The strongest point in favour is that corporates can bring in the capital as also business experience and managerial competence. By far the biggest apprehension is about self-dealing – that corporates will use the bank as a private pool of readily available funds. There are, of course, both statutory and regulatory checks against self-dealing.
Price stability does not ensure financial stability, and the costs of cleaning up after a financial crisis are very high. Asset price bubbles potentially could be more risky than thought earlier, but direct monetary policy response may still have to be avoided. Macroprudential tools may be more suitable for that.