Credit risk transfer instruments in themselves are not to blame for the financial crisis, said Gertrude Tumpel-Gugerell, an executive board member of the European Central Bank (ECB).

She pointed to the increased reliance on market-based funding, particularly in securitisation, as the main worry. Banks' models have shifted from "originate and hold" to "originate, repackage and sell", she said.

Excessive risk appetites coupled with a long period of deregulation were factors that need addressing