As a result, the importance of the so-called credit channel of monetary policy has been mitigated and changes in the monetary policy stance are transmitted to the economy in a smoother and more balanced way, thus reducing the role of inefficient allocative distortions in the transmission process that may arise via the credit channel.
More generally, improved funding possibilities strengthen the resilience of the economy to shocks. A higher degree of financial efficiency, resulting from the further development of capital markets, can also contribute to the conduct of monetary policy by improving the availability and quality of information that can be extracted from financial markets.