The size and the structure of financial intermediation influence the cost of credit, the risk exposure of financial institutions and the effectiveness with which monetary policy is transmitted to the economy. Over the past decade, financial intermediation in emerging market economies (EMEs) has undergone important changes: a higher volume of debt financing has gone hand in hand with a growing internationalization of financial markets and increased lending to households. The 2015 Deputy Governors meeting examined the implications of these trends for EMEs. Participants discussed three distinct but interrelated topics: (i) the role of banks; (ii) the role of debt securities markets; and (iii) the implications of recent changes in financial intermediation for monetary policy.[…]