Shortcomings in regulation and supervision also played their part. In the end, the crisis appears to have been the outcome of the interplay of all of these factors, although  BIS central bankers’ speeches  1  views may differ on the relevance of every factor and its contribution to the outbreak and ensuing virulence of the crisis.
As far as Germany is concerned, our main weakness lay in banks with inappropriate business models. In their search for profitability and in order to save capital, they established what are known as structured investment vehicles. It gives no comfort that many banks in other countries did the same. These SIVs were short-term funded.