In fact, the Board should drive a culture where the expectation would be to go beyond baseline compliance to regulatory and legal requirements and aim for higher, best-inindustry standards. To this end, the Board must ensure a suitable policy framework for its own assessment regarding effectiveness and composition, in accordance with their strategies and risk profiles, both at the aggregated and dis-aggregated levels.
The decreasing reliance on bank loans seems to be most pronounced among large firms with credit ratings, which can resort to public capital markets to meet their funding needs. By accessing the public capital markets, these firms can bypass the usual screening by banks to some extent. However, I think that this view on banks’ disintermediation must be nuanced and put into perspective.