Yet, securitization also meant that banks were able to sell their credit – for example, their mortgage loans – immediately after they had been extended. Such innovative financial techniques had several consequences. First, they enabled lenders to expand the volume of their operations and conserve on capital. Second, they weakened lenders' incentives for prudent screening.
The resulting decline in lending oversight contributed to rapid credit growth, helping to underpin asset price bubbles in some markets, including the housing market in the United States. Third, the complex structure of many structured products made it difficult for the ultimate holders to assess the quality and price of the underlying instrument.