Yao Zeng of IMF in this piece says finance has changed but risks haven’t:
More than 15 years after the global financial crisis, the banking and financial system looks safer. But it’s also evolving in ways that are reshaping who provides liquidity, how money moves, and risks to economic and financial stability. As a result, the next shock may begin not in a bank, but in the new infrastructure underpinning the system.
After 2008, regulators moved swiftly to raise capital standards and introduce new supervisory tools such as stress testing. Banks rebuilt their balance sheets and retreated from risky lending and arbitrage businesses. Asset managers were blamed for the financial turmoil at the onset of the pandemic, but not banks.
Yet even as regulators fortified banks, postcrisis innovations reshaped the financial landscape. Asset managers provided more liquidity as banks stepped back, nonbank start-ups built new risk assessment tools for institutional lenders, developers introduced a wider array of crypto assets, and central banks and governments established real-time payment systems.
These developments cut costs, broadened access, and accelerated transactions. Yet they also caused significant shifts in the structure of financial intermediation. Liquidity, credit, and payments—the core of the banking system—gravitated toward asset managers, tech platforms, and decentralized networks.
This reshaping of finance itself now raises big questions. What happens when critical finance functions lie outside the regulatory framework? How should we ensure stability in a faster, flatter, and more fragmented financial system?
Mostly Economics 
