The Blues currently have 30 players out on loan.
“It is one of the big problems in the modern game,” Wenger told Arsenal’s official magazine.
“You’ve invested a lot of money into players because we’re paying more and more money, and then at the age of 20 you don’t usually get much money for any of the players, so the reflex is to stockpile the players. That’s not right.
“When you look at the number of loans that happen here and there, the whole system has to be thought about again because we have two kinds of solution in there.
“The first is to continue developing players, the second step is just to make sure your investment is safe – that’s not the right way to think about it but it’s the natural reflex for the clubs.”
Wenger suggested the solution is for smaller sides to be part-owned by Premier League teams and used as feeder clubs.
“Maybe you could create a possibility for some clubs to own part of a League One club as a feeder club,” he added.
“After that, a limitation on the number of players on your books could work.
“The way a youth team is organised now is that all the best young players go to the richest clubs, which is where they have fewer chances to develop, so you have to make sure the system shares out the best young players equally.
“It’s difficult because the development of the players depends on the concentration of the good players. The more good players you have together, the more chance they have of becoming even better players.”