However, it is the nature of new markets, given the uncertainties attached to future developments for the companies listed on these markets, to exhibit more volatility than established markets. Bank-based finance has a special role to play for many companies in need of funds, and thus helps to ensure a well-balanced growth process.
The economic literature on "relationship banking" has demonstrated that banks can contribute to alleviating the impact of sudden economic shocks on their clients. Banks stand ready to provide many customers with funds even in adverse circumstances, e.g. when the liquidity of financial markets dries up.