And in particular by market-based finance. For the avoidance of doubt, market-based finance is the raising of equity or debt through the financial markets rather than through the banking system. The growth in market-based finance is a positive development. It provides a useful alternative to bank financing and can facilitate risk-sharing across the financial system. However, it is important that capital markets are resilient.
We need capital markets that can provide the benefits of increasing flows of market-based finance to the economy in good times, but which also prove resilient in bad times.