In introducing this measure, the Bank decided to set long loan periods to make them easier for financial institutions to administer, and to lower the minimum amount per investment or loan to meet even small requests and sow the seeds for growth in even the smallest “nooks and crannies.” B.
What have mattered in recent years are the sign and the size of the gap of intentions and the implications for interest rates, not whether the gap results from a saving glut or an investment shortfall. That said, saving and investment propensities do matter over the longer run.