In addition, this approach allowed banks to reclaim  BIS Review 42/2005  1  some of the market share they had lost to nondeposit products. As short-term interest rates have risen, banks have repriced these deposits more slowly. Steady improvement in already-strong asset quality has supported earnings growth by allowing for lower provisions.
An important factor in the scale of the outflows seen at the outset of the pandemic was the shift that had occurred over the previous decade in the composition of capital flows, towards non-bank financial intermediaries (NBFIs), and in particular, investment funds. This is the first of two main points I want to make.