Traditionally, Asian economies have relied mainly on the banking sector for financial intermediary services, and this may have been at the expense of development of the capital markets.
In particular, we manage credit risk by exclusively purchasing assets of sufficient credit quality, by defining an asset allocation and a limit framework that ensures some degree of diversification, and by applying severe due diligence and monitoring processes. With regard to PSPP, we also decided that the purchases of government bonds conducted by the Eurosystem NCBs will not be risk-shared within the Eurosystem.