However, various benefits emanating from the functioning of the financial markets depend critically upon the resilience of various segments of the market to withstand shocks and the strength of the risk management systems in place.
The net flows, which are often the focus of analysis, conceal a lot of important information that is only evident if you look at the gross flows.3 Another example is thinking about the financing of the corporate sector, where the preference for debt versus equity funding varies considerably depending on the nature and size of the business.