What is more, they play a part in ensuring that savings are not invested solely or primarily in equity markets, which could promote herd behaviour.   LCBMs facilitate the smooth market-based financing of investment needs.
  First studies, which require substantiation, back up the assumption that developed LCBMs also help dampen the volatility of international capital flows, a finding of major significance in the light, in particular, of this year’s G20 discussion.   They broaden the spectrum of investments for international investors and facilitate their global search for diversification.