Irrespective of the level of risk inherent in bank activities, we must remember the fact that banks, particularly those with less robust risk-management and internal controls, are highly susceptible to customer or insider fraud and to mismanagement or, occasionally, insider abuse.
Some important criteria included that originators should not indulge in market making on securities issued by SPV, originators shall not invest in more than 10% of securities issued by SPV, securities cannot have any put option, etc. •  Detailed policy for originators and third parties on provision of credit enhancements, liquidity support/ facilities, underwriting facilities, servicing arrangements, etc.