Excess savings in the world outside the US – the so-  2  See CGFS (2008) and Cassola et al. (2008) for further details. The effects of asymmetric information and counterparty credit risk on the structure of the interbank market and various policy responses are analysed in Heider et al. (2008).
Conclusion In conclusion, the financial services industry has evolved considerably over the past several years, in large part because of innovation in products, services, and activities, particularly in the areas of complex structured finance transactions, credit risk transfer, and risk management. These innovations have the potential, I believe, to substantially improve the efficiency of the financial markets.