This is what we call moral hazard and what has ultimately resulted in an erosion of credit standards not only in US subprime but also in other credit market segments. In general, the ultimate risk-taker does not have the necessary information to monitor the debtor and the transfer process unnecessarily complicates the default risk assessment of the securitised assets.
Sector supervisors: have the courage of clairvoyance  Let us now look at the new tasks for banking supervisors created by digitalisation. After all, digitalisation is also forcing supervisors to keep pace with new developments. This does not mean an independent regulatory framework for digital financial services – after all, our overarching objective is, and remains, financial stability.