In comparison, in the United States, at their peak before the crisis, MBF liabilities were roughly twice as large as traditional bank liabilities. They are currently about 25 per cent larger. Another key characteristic of the MBF sector is its diversity, both within and across countries. It involves a wide range of activities with different levels of benefits and risk.
For example, we view government-guaranteed, mortgage-backed securities as part of the MBF sector because they transform illiquid assets into more liquid securities, in part through market channels. But these securities clearly lie at the less-risky end of the range. They do not embed leverage, and credit risk is eliminated by the government guarantees.