(iii)  When firms can raise their own funds through the issuance of market bonds, they are less dependent on banks and therefore not vulnerable to difficulties that banks might face. This also puts pressure on banks to diversify and widen their portfolio and service range, as they no longer possess captive clients.
Rather, a good policy excels in shaping appropriate underlying macroeconomic conditions. For it is precisely when stable monetary conditions are lacking that the risks associated with financial assets become difficult to evaluate. I think this stance is appropriate, at least for the large, developed economies with mature financial markets.