Over the years preceding the crisis, the overall price of risk fell significantly, and risky, illiquid positions were accumulated in many different national and international markets. When problems emerged in the specific category of US subprime, this started a process which ultimately led to a  BIS Review 160/2008  1  repricing of risk across all asset classes.
So the challenges associated with financial stress and the prospects for financial reform are close to the heart of every central banker. The economic situation in the euro area remains challenging but there are a few signs of a possible stabilisation, and our baseline scenario continues to be one of a very gradual recovery starting in the latter part of this year.