I suggest there were four key observations that determined the overall shape of the Wallis recommendations. First, Wallis observed that the business model of traditional banking was fundamentally changing. In simplified terms, banks could be thought of as suppliers of a portfolio of products, the three main ones being deposits, loans and transaction services.
The failure of the economy to respond favourably to the monetary easing measures reflected mainly the under-developed character of the financial market and, concomitantly, the weakness of the transmission mechanism of monetary policy.