Additional standards have been adopted to strengthen collateral risk management practices. Thus, the Basel III framework will have enhanced risk coverage. This is necessitated due to the excessive exposures of banks to derivative products whose risks were not captured comprehensively under Basel I or Basel II framework.
At its last meeting on 4 October, the ECB Governing Council still considered this outlook for price stability over the medium term to be subject to upside risks. It gave itself a period of time to analyse incoming information in order to refine and update its risk assessment.