Thus, we have a strong interest in ensuring that ABS is a safe and transparent asset class traded in well-functioning, liquid markets. So these are the reasons why the ECB sees ABS as deserving specific attention. Let me add, however, that the ECB does not believe that ABS should warrant special treatment where it is not justified from a theoretical, empirical and practical perspective.
First, the macro-prudential framework embedded in the CRD IV and CRR applies to credit institutions only, leaving aside less-regulated institutions. While the optimal degree of regulation imposed on less-regulated entities remains the subject of intense discussions, more regulation is justified where such entities carry out activities that are close substitutes to banking intermediation (in particular institutions lending to households).