The temporary nature of migration also implies that a great amount of knowledge and wealth is returned to the countries of origin, thereby supporting the catchingup process in these countries. In the short run, however, labour migration also constitutes a challenge to the countries of origin.
In other words, this will be a banking system that comes closer to its traditional role of taking deposits and making loans. However, a permanent shrinking of the banking system raises some questions about how finance will be intermediated in the euro area. If intermediation between savings and investment is taking place less through banks, then it must take place elsewhere, through capital markets.