Supply conditions improved in the early months of 2012 thanks to Eurosystem refinancing. New strains have emerged in recent months in connection with the instability of the markets. The three-month rate of change in bank lending to firms was slightly negative in May, while credit to households remained stable.
This is likely to be more so in the developing countries where mobile phone penetration is 8 – 10 times the penetration of the basic bank account. The lack of formal financial services infrastructure and widespread financial activity limits market exchanges, increases risks and curtails opportunities to save.