4  BIS central bankers’ speeches  securities did ultimately make their way back onto the balance sheets of certain financial conglomerates, much to their dismay. As a result, originators and securitizers had an increasing incentive to weaken underwriting standards in order to increase the volume of loan origination, and thereby the volume of securitizations.
Business model vulnerabilities remain across sectors. Governance issues remain prominent and there is strong evidence (none starker than in some banks and their approach to the tracker issue) that cultural change is still necessary. In other words, across all sectors, there is still much work needed to meet regulatory and supervisory expectations.