The risk weighting system encourages non-asset business, or commission-based business. The Accord will also boost asset securitization since securitization lowers risk level of assets thus lowers capital requirements. In a way, it encourages banks to shift, sterilize and lower risks by all means.
E-commerce can erode the monopolistic and monopsonistic power of suppliers of goods and services, reducing mark-ups. Such a change in mark-ups can be viewed as a flattening of the Phillips curve, meaning a given change in the output gap has a weaker impact on inflationary pressures.