Furthermore, in my view, financial institutions, particularly banks, will probably play a crucial role in this process. They have the ability to originate loans and make sure that there are incentives for accurate credit assessment of the underlying risks.
To restore the public's faith, they need to show that sufficient mechanisms are in place to reasonably assure investors  BIS Review 86/2008  5  that financial institutions have the incentives to issue good credits. Only when they have rebuilt the confidence that investors previously had in them will banks be able to distribute securities backed by these loans.