One general consideration was well described by Alan Greenspan (1999): “Multiple alternatives to transform an economy's savings into capital investment act as backup facilities should the primary form of intermediation fail.” 4 This substitution between different segments of the financial system help to smooth overall financial flows which contributes to lower volatility in the real economy.
Agus D W Martowardojo: Managing stability, promoting transformation for sustained economic growth Address by Mr Agus D W Martowardojo, Governor of Bank Indonesia, at the Annual Bankers’ Dinner, Jakarta, 14 November 2013.