BIS central bankers’ speeches  1  Through credit substitution business, many banks have departed from this model; have surrendered much of the inherent, comparative (says Diamond) advantages of their intermediary function; have left credit assessments to rating agencies; and have, in some cases, delegated monitoring.
At the same time, when packaging loans and in lending contracts, they looked not at appropriate incentive structures but, above all, at tradability. If it can be traded, the risk can then be fobbed off on a third party – or, at least, that is how the thinking goes. In effect, securitisation techniques dissolved the link between oversight and the ultimate bearer of risk.