In this regard, infrastructure is one area in which the increase in concentration has received attention. The creation of NewBank, which I describe later, is a recent private-sector response to the concentration of clearing and settlement activities in the market for government securities. The second trend is that the pricing and management of credit continues to become more market oriented.
This development should increase financial stability, because market pricing and the management of credit risk via marketable securities would be expected to promote a more robust system for risk management.