I wish to conclude by flagging some of these issues: (i)  Credit risk transfer  Over the past decade or so, the business models of global banks have evolved from a "buyand-hold" to an "originate-to-distribute" model. Instruments to transfer risks from the balance sheets of the originating institution have developed in size and in complexity.
Risks have been repackaged and spread throughout the economy. The greater part of these risks is sold to other banks and to leveraged investors, very often the originating bank itself funding the investors. Small and regional banks, in particular, were significant buyers of subprime and other structured products. Insurance companies are also increasingly using such instruments to securitise their liabilities.