Another lesson learned from the financial crisis is that there is a real risk that these markets will stop functioning at times, or that interest rates soar to extraordinary levels. I have already said on several occasions that it is a good idea to spread the auctions, and I would like to acknowledge – once again – the initiatives taken in this respect.
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.