In addition, there was a widespread underestimation of risks and a lack of transparency in the context of the extensive use of derivative products, partly related to their evaluation by rating agencies, leading to mistrust between market participants, an increase in the cost of funding and liquidity shortages in the course of the turbulences.
This underestimation of risks may be seen as another key weakness of the banking sector. Against this background, let me finally discuss the need for potential reforms with respect to preventing and handling financial crises. It seems clear that some very important lessons can be drawn from the turmoil for market players as well as for public authorities.