There might be a case in which the financial intermediation function will not be carried out smoothly from a macro perspective, if the strains in global financial markets increase and financial institutions become more conscious of possible capital constraints in the future.
Indeed,  1  The problem was exacerbated by the originate-to-distribute model, which led to misaligned incentives for the U.S. originators of subprime mortgages. BIS Review 101/2008  1  some products were held directly by banks themselves. Investors soon came to realize that highly rated structured-debt instruments could fall substantially in value and were subject to severe downgrades.