In the interim, the central bank or a regulatory body may help to reduce the costs of information. The Bank of Canada has adopted high disclosure standards for ABCP that it will accept as collateral in its Standing Liquidity Facility. This may encourage market participants to raise their own standards. Whether they do in the end will be their decision.
As a former community banker, I know that few understand their communities better because they live in the local economy and can step in to lend in a targeted way to those best prepared to benefit.