We need to think laterally, harness technology, adopt effective dissemination practices and reach out to all the people across the country to provide at least minimal banking services. Financial inclusion is especially valuable as it will at once promote both growth and equity. I can hardly overemphasize how big a challenge financial inclusion is for banks, for the banking regulator and for the government.
The recent euro area Bank Lending Survey offers some early evidence on the response of euro area banks to the initial turbulence in credit markets. The results show a net tightening of lending standards which is greatest with respect to loans to enterprises, particularly for the financing of mergers and acquisitions and corporate restructuring.