This is where our continuing reform initiatives toward greater consumer protection come in. The fourth lesson we can draw from recent experience is that consumer protection complements financial stability. These twin goals ultimately help address the expanding needs of the growing economy.
Another feature of the 2006 guidelines was the requirement that the gain on securitization of assets should not be recognized upfront and should be amortised over the life of the securities issued. This requirement was put as a conservative measure to avoid securitisation being used to inflate profits even while banks exposures in various capacities to the SPV remain. 19.