1  The Joint Forum (2008), Credit Risk Transfer – Developments from 2005 to 2007 (Basel, Switzerland: Bank for International Settlements). 2  BIS Review 65/2008  Credit-rating agencies As I mentioned, establishing sound and thorough independent risk evaluations is costly, particularly for complex structured products that have only recently been created.
(I may add, from my particular vantage point as a prudential supervisor of banks, that we are frequently amazed at the fragility of audited bank accounts under supervisory scrutiny, and at what are often accepted as plausible assumptions.)