The pre-GFC quarter century was an unusual period, in that competition in financial intermediation came to be focused mainly on the lending side of the balance sheet. That now looks to have been an aberration, and we seem to be entering a period where significant competition on both sides of the balance sheet becomes the norm.
It might take some time to get used to this new reality. But in general I see it as a healthy development because it will mean banks being under greater market discipline to manage their risks. And of course, regulators will be doing their part on that front as well. 6  BIS central bankers’ speeches