We need to squarely recognise that securitisation, after all, is also a credit-risk-transfer instrument and has the potential of dispersing the risks from the originating banks to those parts of the system which might not necessarily be best equipped to manage that risk.
A regional market would offer some efficiencies and enhancements to issuers and investors, but would have to be underpinned by the individual country components. It is in each country’s own interest to improve the functioning of their own market in any event. So the case for local initiatives is clear.