Automatic pegs to ratings, such as in the investment rules of mutual funds, can intensify pressure to sell when prices are falling. In fact, the growing number of passive investment strategies is narrowing the range of sentiment in the financial markets.
In the United States for example, retail banking integration has led to a significant increase in the number of multi-state banks. That was not always the case. For example, following the oil price collapse in the mid-1980s, almost every bank in Texas failed, creating a state-wide credit crunch.