By all means, the two-pillar strategy is in my conviction clearly superior - particularly at the present juncture of considerable model uncertainty - to any mechanical rule-based approaches. The latter are usually tailored to specific views of how the economy operates and are therefore less likely to perform well in periods where these views might have to be adapted.
It can do so by assisting banks’ ability to fund and distribute risk. Here we believe that having a consistent approach to securitisation underpinning various pieces of legislation is key to attracting a broader investor base and to de-stigmatising European securitisations. Let me say clearly: no one wants to have the complex, opaque products of the pre-crisis years.