As I have noted today, what has been called the bank-lending channel – the idea that banks play a special role in the transmission of monetary policy – can be integrated into this same broad logical framework, if we focus on the link between the bank's financial condition and its cost of capital. Nonbank lenders may well be subject to the same forces.
In the case of exchange rate reform, a stronger yuan is likely to affect the price competitiveness of exporters, but is a favorable change to enterprises that import large quantity of raw materials and semi-finished goods to  2  BIS Review 103/2010  meet domestic demand.