[29] Because services are less capital-intensive and their prices are, on average, more rigid than in other sectors, changes in interest rates are slower to affect aggregate inflation outcomes. [30] The second factor relates to the impact of monetary policy on households’ cash flows.
Thus, in the eyes of the markets these banks enjoy an implicit  BIS central bankers’ speeches  1  state guarantee: in case of trouble, the state would feel compelled to step in and rescue the distressed bank. Yet this implicit state guarantee creates flawed – and dangerous – incentives.