In turn, however, this will aggravate the inherent risks in the banking system and lead to a wider contagious effect. This is because instability in the market for one type of product will quickly spread, affecting the overall stability of the banking industry.
It is logical to expect that strategic alliance would continue to develop, as the operation of financial institutions become more integrated and interrelated to one another. Nonetheless, our expectation is that the bank sector would be able to continue to be the driving force in development of these new products. This strategic function can operate directly and indirectly.