First was a concern about the financial health of counterparties, particularly banks, as marked-tomarket losses eroded capital. Second was a concern that securitization would proceed at a much slower pace than in the past, thus requiring reintermediation that would result in a more rapid expansion of bank balance sheets and an associated need for capital.
My submission is that we are in a world of expanded mandates for central banks, and inclusive finance should not be excluded from such mandates. Perhaps central banks could satisfy themselves and the society at large that, between the markets and regulations, finance is serving the minimum needs of most common people while maintaining efficiency and stability.