However, if a housing bubble common to every region and professional class is generated, the economic value of the RMBSs will rapidly decline together with the bursting of the bubble.
8  BIS Review 132/2008  In this context, to ensure financial system stability, financial institutions for their part are required to manage risks properly, while the supervisory authorities and central banks need to have a macroeconomic perspective to cover not only individual risks that financial institutions incur, but also risks inherent in the financial system.