Financial Disintermediation
The shift of funds from banks to alternative channels, potentially reducing bank lending.
What is Financial Disintermediation?
In CBDCs, disintermediation risks arise if retail versions attract deposits, contracting bank credit by 5-10% in high-risk scenarios. Two-tier models like e-CNY mitigate this by limiting holdings to RMB 500,000.
For digital assets, DeFi platforms cause “slow” shifts, but crises trigger “fast” runs, impacting stability. IMF models show low liquidity risks increase lending if managed.
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