These measures will be introduced by the end of the year, and phased in as financial conditions improve and economic recovery is assured. Measures to address the misalignment and lack of transparency of incentives in the securitisation market include strengthening the capital requirements for exposures, as well as introducing risk management practices and disclosures.
In the credit markets, greater risk awareness by banks and increased bank funding costs have been reflected in the significant and general further tightening of lending standards in the euro area, the US and the UK.