Bank Disintermediation: Causes and Consequences

We examine the causes and consequences of bank disintermediation. Are the causes regulation or competition from non-bank financial institutions (NBFIs)? Or are banks now cooperating with NBFIs, and does the greater risk of competition for them come from retail central bank digital currencies (CBDCs)? Can the EU’s Savings and Investment Union (SIU) be a game changer for them? And what effects may bank disintermediation have on central bank monetary policy transmission?

• Evaluates regulation, NBFIs and CBDCs as sources bank disintermediation.
• Explores the effects of NBFIs on the effectiveness of central bank monetary policy transmission.
• Questions the strategy and chances of success of the SIU.