And institutions for cross-border public risk-sharing are less developed, placing the full burden of dealing with the after-effects on individual sovereigns. This has two consequences for monetary transmission. First, it means that some of the main transmission channels – namely the bank lending channel and the balance sheet channel – are more likely to be disrupted in the event of major shocks.
R Basant Roi: Indian Ocean International Bank Ltd - opening of the on-going training programme Keynote address by Mr R Basant Roi, Governor of the Bank of Mauritius, Port Louis, 8 March 2003.