This might enhance the efficiency of monetary policy by reducing the time lags in the transmission process, since the capital markets usually respond more quickly to interest rate changes than does the banking system. The exchange rate channel might likewise lose in importance if other countries, for example future accession countries, pegged their currencies to the euro.
The profitability of housing loans also warrants careful monitoring. In addition, consumer loans such as card loans and car loans are an area where potential needs exist over time. With a view to its potential, the major banks have been increasing their capital subscription to consumer credit, credit card, and consumer finance companies.