Euro zone: We should not forget the advantages of bank financing

In the euro zone we are seeing the first signs of disintermediation of corporate financing (which would be carried out more in financial markets and less via bank credit). But since this change is taking place, it is useful to recap the advantages of bank financing: Banks continuously analyse borrowers’ situation, also after they have granted loans, and therefore have quality information on borrowers; Banks provide liquidity by transforming short-term savings into long-term financing of the economy; Banks diversify risks between borrowers, which enables them to lend more .