In particular, originators who securitize may inadequately screen potential borrowers unless investors provide oversight and insist on practices that align originator incentives with the underlying risk. The originate-to-distribute system is thus not only a potential source of risk to the financial system but also raises concerns regarding consumer protection.
That said, monetary policymakers are well-advised to take the implications of financial imbalances into account, since they can pose serious risks to price stability in the long run.18  5 Conclusion Ladies and gentlemen, Nelson Mandela wrote in his autobiography “Long Walk to Freedom”: “I have discovered the secret that after climbing a great hill, one only finds that there are many more hills to climb.” Central banks all over the world were forced to climb great hills over the last decade.