Incoming data and survey results suggest that economic activity improved significantly in May and June from its trough in April, alongside the ongoing containment of the virus and the associated easing of the lockdown measures.
Some banks are now non-bank-like, as exemplified in the current financial jargon used to describe these banks’ business practices, such as “originate to distribute model” and “prop trading”, while some non-banks have become bank-like, as the phrase “shadow banking system” suggests. The financial innovations behind these changes are in essence welcome developments, helping to improve efficiency by shifting risk among economic agents.