Although state-owned banks are most prone to this kind of political exploitation, privately-owned banks can also function as quasi-fiscal agents, for example when they are forced to lend to particular sectors or industries. Obviously, these financing practices reduce the viability of banks in the medium and long term. 9.
At the same time, the development of credit-scoring tools and the securitization of loan pools are opening doors to national credit markets for both consumers and businesses. Deregulation has encouraged competition and innovation by opening the marketplace to the entry of new service providers and the expansion of existing service providers. Throughout our banking history, markets have adjusted to respond to demand.