These symptoms also pointed to internal weaknesses and political mistakes: for example, an over-rigid pegging of the exchange rate to the dollar and inadequate efficiency of the domestic financial sector. Certainly, there are good reasons for pegging an exchange rate to another currency. Credible pegging to a stable anchor can help to reinforce internal discipline.
More generally, the emergence of the so-called shadow banking system changed important features of the traditional banking model, particularly at the largest institutions. These banks became increasingly dependent on the wholesale funding provided by securitization, commercial paper issuance, and other sources – funding that was often poorly matched to the maturity of the firm's assets.