Besides the balance that monetary policymakers themselves have to strike, there is another state of balance they count on to maintain price stability – a well-balanced financial system. 2.  Credit and capital: Competition or complementarity? Let us have a closer look into the relationship between bank-based financing and marketbased financing.
Does one detract from the other, or can one deliver benefits where the other one comes up short? To put it succinctly: Are credit and capital competitive or complementary? The debate on the superiority of bank-based or market-based financial systems is decades, if not centuries old.