Whereas in the conventional model, banks favour customer relationships meaning that banks have the necessary incentives to monitor carefully lending activities and assess properly credit risks. The convergence towards the new business model stimulates an increasing information asymmetry and uncertainty and thus affects the degree of market efficiency.
Recent experience has shown the limits of this model and has revealed the opacity that emerged from the use of highly complex instruments and derivatives. In this context, is the substitution process between the two models reversible? If not, what are the possible alternatives?