Altunbas, Gambacorta and Marques (2007) point in this direction and suggest that asset securitization may have reduced the importance of the bank lending channel for monetary policy transmission. Further, it allows banks to transfer parts of their credit risk to other market participants such as institutional investors. Thus, those banks that use securitization more intensively are better sheltered against monetary policy.
In a similar vein, with the increasing use of derivative instruments lending policies of banks might also have become less vulnerable to macroeconomic shocks – such as an unexpected monetary policy tightening. In addition, derivative instruments potentially facilitate banks to raise non-reservable sources of funds, for instance, by improving a bank’s liquidity.