2 Consequently, financial developments may have made the bank lending channel less important. However, to the extent that credit protection through credit derivatives is associated with an increase in bank credit supply the importance of the bank lending channel has not necessarily changed.
3 For example, the possibility of transferring credit risk may not result in reducing risk from a  1  See Boivin, Giannoni, Mojon, “How Has the Euro Changed the Monetary Transmission?”, NBER Working Paper No W14190. 2  See for example Altunbas, Gambacorta and Marques-Ibanez (2007), “Securitisation and the Bank Lending Channel”, ECB Working Paper No. 838.