Sound familiar to 2008?: “changes in the 90s enhanced asset securitization, shifting the prevalent mode of financial intermediation from a bank-centric model of taking deposits & issuing loans (holding them to maturity) to a new model where loans were packaged into securities & sold to investors.”
by Dismal-Jellyfish Source: https://libertystreeteconomics.newyorkfed.org/2023/11/the-nonbank-shadow-of-banks/ TLDRS: Fed paper: The evolution of banks and nonbanks is closely linked, particularly since the 1990s. In the 1990s, financial ‘innovation’ and regulatory changes boosted asset securitization. This shifted financial intermediation from a traditional bank-centric model (taking …