The background to this view could include the fact that risk-taking activities of financial institutions have been limited, even in a low-interest rate environment, and that a buildup of financial imbalances has not been observed so far.
First, the development of deep and liquid securitisation markets for SME loans would improve the ability of banks to source financing for new SME lending. Second, if CMU delivers alternative financing sources for enterprises, this can help reduce the dependence of SMEs on banks for credit intermediation.