... alleviate the funding risks faced by the banks. It should therefore facilitate the provision of money and credit to the economy.22 Understanding the funding models of banks and the interlinkages ... domestic and foreign of ces on the basis of the relative needs. The availability of such markets to large banks, on the one hand, insulates the lending activity from local funding conditions and, ... from the costs of originating and servicing the loans, the provision of transaction services and the risk of default. Different explanations have been put forward in the literature for this...