Second, banks’ liquidity positions have also been strengthened with the introduction of rules such as the Liquidity Coverage Ratio and the Net Stable Funding Ratio. Third, the vulnerability of the financial system to contagion on a global scale has been curtailed, by providing incentives to clear over-the-counter (OTC) derivatives centrally.
And fourth, the market for complex and opaque securitizations – a form of financial intermediation which played an important role in the run-up to the crisis – has virtually disappeared.