The external finance premium paid by banks is presumably reflected in turn in the cost and availability of funds to bank-dependent borrowers. Importantly, this way of casting the bank-lending channel unifies the financial accelerator and credit channel concepts, as the central mechanism of both is seen to be the external finance premium and its relationship to borrowers' balance sheets.
While many divergent views are expressed in this publication, its most striking feature is an expression of a shared understanding that access to financial services for all, including low- or moderateincome communities and individuals continues to be an important goal for policymakers.