Shocks to the overall economic system are accordingly less likely to create cascading credit failure. Lenders have had the opportunity to be considerably more diversified, and borrowers have become far less dependent on specific institutions for funds. A major contributor to the dispersion of risk has been the wide-ranging development of markets in securitized commercial and residential mortgages, bank loans, and credit card receivables.
If banks are close to the point where they are deemed failing or likely to fail, they are likely to have taken actions (such as reducing availability of credit) that will harm the economy.