To be sure, pockets of difficulty emerged, and lenders became more cautious, but, for the most part, credit continued to flow, and problems remained isolated, not systemic. Our increasingly sophisticated financial market was able to effectively distribute risk so that lenders were sufficiently diversified to survive some quite stressful developments. In addition, financial markets have important automatic-stabilizer properties.
There is a need to capture newer risks emerging from links, tiering and indirect participation which were hitherto not captured  BIS central bankers’ speeches  1  fully in the existing standards. The recent global crisis revealed that liquidity lines assumed to be secured are not so secured in a stressed scenario.