BIS Review 134/2010  1  environment, and in the build-up to the recent crisis, supported the growth of sub-prime related securitization with high ratings and surprisingly high nominal returns. Investors had either knowingly or unknowingly taken on large credit and liquidity risk. Such behavior had been amplified in the low interest rate environment where liquidity was plentiful.
The first is that a high-level body is explicitly tasked with the monitoring and prevention of systemic risks to the financial sector, similar to what is happening in other important jurisdictions such as the US. Second, the macroprudential analysis will also be conducted at the EU level, in recognition of the increasing degree of financial integration within the EU.