At the same time, the impact of technological advancement, financial liberalisation and the degree of integration between domestic and international financial markets has rendered the conduct of oversight of the financial system a highly complex task. Regulatory and supervisory authorities need to be regarded as providing a range of services to the community.
Conditions in the market have improved markedly since the introduction of this program, with spreads declining sharply and with more funding available at longer maturities. Market participants tell us that the CPFF contributed to these improvements. Most recently, the Federal Reserve launched the TALF, which is aimed at restoring securitization markets, now virtually shut down.