These facilities are structured to give the government a share of any gains in the value of assets purchased while protecting the private-sector investors from some of the downside risks inherent in real estate credit at present. By providing such protection along with leverage that is unavailable in markets today, the government hopes to bolster demand for these assets and restart markets in them.
By increasing competition, and unbundling banking services across a larger range of firms, it reduces the systemic importance of large banks. Greater sharing of customer data may also create opportunities for more personalised financial products and lower switching costs (which may promote market discipline). Open banking also presents risks, including making the banking sector more prone to cyber risk.