4.1  Monetary policy, asset securitization and the changing role of banks  The role of the banking system in the transmission of monetary policy decisions to the economy – the so called “bank lending channel” – was once central. It is now rapidly diminishing. Compared with the traditional way of thinking, this is a sea change.
One way is to look back and learn from history. So I would like to start with two examples from the past. I will begin in the 18th century. More specifically with the Rothschild family dynasty. It was founded by Mayer Amschel Rothschild. He was the head of a poor family comprising his wife and 10 children.