The importance of the consistency of the messages across time, countries and media outlets remains. But the context has changed fundamentally. During this crisis, central bankers and policy-makers are faced with a potentially explosive interplay between markets and politics. Messages that are necessary and legitimate in public debates can be completely unsuited for market communication and exacerbate tensions. Let me explain.
I strongly encourage all mortgage banks to follow suit. Refinancing risk is part of the product design. This is the risk that the forthcoming regulation on stable financing is addressing – and should address. The details are not in place yet, but it is planned to take effect in 2018. This will require major structural adaptations that cannot be achieved overnight.