At the Bank of Canada, we will continue to monitor these effects, while aiming neither to favour particular market segments nor to insulate market participants from the consequences of their decisions. Those consequences will continue to reveal themselves in the weeks and months ahead. This will remain a difficult process.
However, the responses that I have just outlined will help the market translate uncertainty into risk, and encourage the appropriate repricing of risk so that markets can ultimately return to more normal functioning. However, this will not mean a full return to the status quo ante. While risk will still be distributed, securitization will be increasingly transparent and standardized, and perhaps eventually exchange traded.