THE World Bank is funding development of new financial instruments for providing home finance to the unorganised sector in the country in the light of the subprime crisis. According to the World Bank, there was confusion that the subprime crisis was caused by loans to low-income borrowers, when actually it was dangerous lending that caused the problem. Speaking to ET, World Bank senior housing finance specialist Olivier Hassler said, "The subprime crisis is less defined by market group than by the type of lending. The main factor for the crisis was dangerous loans to vulnerable people, when what was required was extra caution and use of risk-mitigating instruments to serve the weaker section.' The World Bank