However, it is important for firms to feel free to select what they judge as the most advantageous way to obtain funding in order to ensure a smooth system of corporate financing. As markets become deeper banks themselves will tend to seek to securitise existing loan assets and to provide advisory and underwriting services for the issue of securities.
This has been the trend elsewhere, where bank securitisation has become quite normal. Securitisation has its advantages as it allows comparatively riskier firms to access to capital markets, and it lowers financing costs by segregating higher quality receivables or assets from the risky firms.