Due to the lack of confidence into the financial industry that was driven from investors as well as the financial industry itself we are seeing two future trends:

• refinancing gets more short-term
• investors require additional asset-backing

These trends are even enforced due to regulation such as Basel III and its liquidity and collaterisation requirements.

If an entity requires refinancing the following challenges occur:

• bank refinancing shouldn't be solely short-term respectively based on saving deposits allone
• what is the most effective strategy to receive a maximum amount and most stable liquidity for lowest costs from my existing asset-base?
• what kind of product approach fits best to my business model (for example Pfandbriefe, Structured Covered Bonds, newly structured securitisations, debt certificates, loan funds, ...)?
• what are the requirements for my asset-products if I have to set-up a refinancing instrument or program aside the conventional and regulated "Pfandbrief" market where I have a clear set of eligibility criteria for mortgages, public finance and ship or aircraft loans?
• what consequences occur because I have to take an integrated view from investors' requirements, my own refinancing needs and the structure and needs of my lending market to originate assets that can be used as valuable collateral for my refinancing products?
• what has to be done to implement such a refinancing product within my bank organisation?
• will I get a match from long-term asset-based products together with my additional short-term refinancing sources to fully fund my asset-origination, ... if yes, what pricing do I have to expect?

The easiest way is to fund via saving deposits and the ECB - the most secure was is to take the challenge against difficult market conditions and to build-up a long-term funding channel that fits best to my individual asset origination.