Under such circumstances, the financial intermediation system must be equipped with a strong capability to deal with risks, and needs to contribute to improving the power to create value added through the efficient allocation of resources. Toward this end, financial institutions will be severely tested in their ability to evaluate credit risks, develop new financial services, and manage risks.
It’s not hard to find examples of such uncertainties within the financial services industry. The evolution of the over-the-counter derivatives market over the past decade has been nothing less than spectacular.