On the contrary, the credit institutions’ intermediation can in some cases even be superior to the market-based financial system. Just to give a particularly important example: The corporate landscape in Germany has traditionally been characterised by small- and medium-sized enterprises.
Long-standing, strong business relationships with specific banks are particularly suited to covering the financing requirements of such enterprises at reasonable costs even in periods of economic difficulty. 5  BIS Review 25/2000  However, from the perspective of the New Economy, market-based financing is especially important.