In order to create significant nonbanking intermediation it is necessary to return to the problem of the current concentration of the financial services, and introduce the measures we have mentioned on various occasions for dispersing the foci of financial power in Israel's economy.
Because of the process of globalization that Israel is currently undergoing, this involves building cooperation with international financial institutions rather than reducing the existing size of commercial banks. Why would this make monetary policy more efficient? Because the aim of monetary policy is to influence the public's economic decisions.