36 Monetary Policy Statement November 2020 37 Macroeconomic Research After the Crisis, Remarks by Janet L. Yellen at the 60 th annual economic conference sponsored by the Federal Reserve of Boston, October 14, 2016, https://www.federalreserve.gov/newsevents/speech/files/yellen20161014a.pdf 38 Distributional Impact of Monetary Policy, Leong, J., RBNZ 2020 (Work in progress) Page 15 of 17  16  Figure 16: Transmission Channels of Distributional Impacts in the Empirical Literature  The direct wealth channels include: - Savings redistribution: lower interest payments on debt make net borrowers better off and net savers worse off.
As a result, the turn of the housing and credit cycles affected most severely financial institutions that did not have in place appropriate risk management processes. In particular, risk management systems that help the build-up of sufficient capital and liquidity buffers would have better protected them from disruptions to the financial markets.