More importantly, it raises issues for the resolution regime given that the backing for depositors gets constrained. 27. The downside of securitisation that has come to the fore is the absence of alternative solutions available to borrowers to restructure their loans when there is a downturn with the originator since the banker–customer relationship is snapped when the loans are securitised.
For instance, our market intelligence has found episodes suggesting signs of deterioration in the functioning of the JGB and related money markets that were not detected from statistical data. An example is the occasional difficulty in borrowing on-the-run JGB.