The financial crisis of 2007-09 showed how financial institutions changed, with shadow banking becoming more important due to asset securitization and banking merging with capital markets. This shift affected the global financial system, especially in the United States. In a market-based financial system, banking and capital markets are closely linked, and the leverage of market-based financial intermediaries impacts funding conditions. When these intermediaries' balance sheets shrink, it can signal an upcoming financial crisis. The article discusses these changes in financial intermediation, the recent financial crisis, and the responses by central banks like the Federal Reserve.