This helps ensure that macroprudential policies are implemented in a consistent manner, thereby safeguarding the integrity of the EU’s single rule-book. At the same time, the additional oversight by the ECB limits the risk of the so-called inaction bias to ensure that systemic risks, where identified, are addressed in a timely fashion.
Moreover, the GSEs have been allowed to invest in many forms of non-mortgage debt, such as corporate bonds and commercial paper, to the degree that the GSEs can argue such investments support their liquidity goals and thus indirectly support mortgage markets. BIS Review 37/2005  1  highly competitive Aaa market, where a few basis points are often competitively determinant.