Greater competitiveness and sustainable growth of the whole euro area will then follow. To sum up what still needs to be done: each euro area country needs to find its own trade-offs and support from its national constituencies. There might not be a single approach fitting all.
By securitising loans, retail banks can focus on their role as originators, while other institutions such as investment banks specialise in bundling these loans into structured products that are then sold to investors. The benefits are clear: specialisation along the securitisation chain creates a more efficient financial intermediation process, in which risks can be priced and transferred. 2  BIS Review 67/2008  9.