Therefore a robust risk framework must be able to drill down to a granular level so that the risk associated with individual portfolios can be analysed.   The crisis revealed that the activities of lightly regulated entities were not as de-linked from their originators or sponsors as was previously thought.
In this sense, persistently low interest rates since the turn of the century have been perceived as contributing to the global financial crisis as well.12 A second mechanism through which persistently low rates affect financial soundness relates to the reduced incentives for balance sheet repair.