Disintermediation will be enhanced by the need for pension systems to rely more on funded retirement schemes. Disintermediation will change the transmission process. Basically, it is speeded up. And disintermediation will change the income structure of banks. A rising share of fees and dividends, at the expense of interest income, will increase the volatility of banks' income.
While euro area economic activity moderated in the first quarter of 2018, following high levels of growth in 2017, the fundamentals remain in place for continued solid and broad-based economic growth. In fact, economic growth continues to be supported by the domestic strength of the economy. Private consumption growth is expected to remain robust thanks to continued improvements in the labour market.