In fact, with the shifts in the economic landscape, the increasingly changing needs of the market, the advent of new technologies and channels, it may be said that the demand on rural banks today is even greater than it was then. Rural banks must commit to continuously upgrade their capacity, efficiency and sustainability.
Simultaneously however, firms will need to adjust production processes and business models to a 1.5 meter economy, which will have an effect on productivity and perhaps also on wage and price formation. This, together with the potential slicing up of global value chains, amounts to the negative supply shock I alluded to.