The euro repo market also experienced tightening conditions in 2008, characterised by declining volumes, the exclusion of some securities from the pool of eligible collateral, as well as the exclusion of some counterparties by means of larger haircuts and margin requirements.
After a drop in 2008, volumes started increasing from 2009 onwards, reflecting to some extent a shift from unsecured to secured funding, which gives lending banks more protection against counterparty credit risk. 11 Before the crisis, financial markets in the euro area were integrating rapidly.