Distribution is related to marketing and consultancy, and it is important for customers––both from the point of view of the supervisory authorities and from that of customers themselves––that the consultant be objective. That cannot occur, however, when the same bank holds the funds that it is trying to market and give advice on.
Second, while spillover is unavoidable, domestic fundamentals are important to cushion its adverse impact, particularly for countries with greater external financing requirement as reflected in their current account deficits. It will, therefore, be desirable to contain the CAD around its sustainable level.