Emergence of several new players with diversified presence across major segments and possibility of some of the non-banking institutions in the financial sector acquiring large enough proportions to have systemic impact make it imperative for supervision to be spread across various segments of the financial sector. Banks have grown organically beyond the national frontiers and spread across the globe.
Moreover, the expectation of Federal Reserve tightening has apparently already induced other significant balance sheet adjustments as well. An unwinding of carry trades is notably under way at least judging from the shift in the trading portfolios of primary dealers.