first, the provision of credit to nonfinancial businesses and households is critical to a well - functioning economy. indeed, ben bernanke ’ s research on the great depression came to the conclusion that it was the collapse of credit growth, rather than the slow growth of the money supply, that was primarily responsible for the financial crisis of the 1930s. second, the basic business model of a bank is straightforward : banks take deposits from their customers and invest the proceeds in the economy via loans to businesses, households, and governments. therefore, a bank ’ s balance sheet typically has shorter - term, highly liquid deposits on the liability side and longer - term, illiquid loans on the asset side. this maturity transformation makes banks vulnerable to runs. in recognition of this note that not all nonbank financial institutions are included in the international monetary fund definition of shadow banks. in particular, insurance companies and pension funds are excluded. see international monetary fund ( 2014 ), global financial stability report : risk taking, liquidity, and shadow banking – curbing excess while promoting growth ( pdf ) ( washington : imf, october ) p. 67. bis central bankers ’ speeches vulnerability, bank deposits became insured and the lender of last resort function was extended to dealing with bank runs. third, nonbank financial institutions also act as intermediaries. their importance as lenders has increased dramatically over the past 35 years. data from the financial accounts of the united states indicate that in 1980, banks accounted for about 60 percent of total credit market assets held by the domestic financial sector, while nonbanks held about 40 percent. 2, 3 certain nonbank financial institutions have long been important credit providers ; for example, in 1980, life insurance companies were vital to corporate bond and commercial real estate markets, accounting for about one - third of the debt outstanding in those two markets combined. while insurance companies remained important, other types of nonbank financial institutions, such as gses ( government - sponsored enterprises, primarily fannie mae and freddie mac ) and mutual funds, rose in prominence over the next few decades, so that total credit market lending by nonbanks greatly outpaced lending by banks over the 1980s and into the 1990s. by the late 1990s, nonbanks held around two - thirds of total credit market assets held by banks and nonbanks. their share has stayed relatively stable since then. the nonbank financial system includes a diverse group of entities such as insurance companies, finance companies,

krzysztof rybinski : how to use globalization to improve poles ’ living standards? address by mr krzysztof rybinski, deputy president of the national bank of poland, at the panel session : globalization and poland ’ s development, 4th congress of the polish lisbon strategy forum, warsaw, 13 october 2006. * * * ladies and gentlemen, in my today's speech, i should like to achieve two goals : • first of all, i would like to outline major economic changes effected by globalization. 1 • second, i would like to point out to such areas in poland's economic strategy that call for profound changes necessary if we want to reap the benefits of globalization while avoiding its pitfalls. at the same time, i would like to emphasize, as i usually do, that the opinions presented in this speech reflect my personal views and by no means are an official stance taken by any institution i used to be or i am presently professionally involved with. * * * what major changes in the global economy and in national economies have been induced by globalization? globalization may be defined in various ways, and i believe that its essence is best captured when we define it as free movement of goods, services, labour, capital and knowledge between countries. before i proceed with the presentation of the most important effects of globalization, it is well worth recalling the demographic trends that are going to strongly influence the global economy. according to un estimates 2, by 2050 europe's population will have shrunk by more than 70 million, that is by around 10 %. in the same period, asia's and africa's population will have grown by 1, 300 million and more than one billion respectively. this means that we should expect a gradual shift in the centre of gravity of the economic activity from the us and europe to asia and africa. as a matter of fact, numerous estimates have shown that in 2050 the chinese economy will be 40 % larger than that of the us, while india's economy will be similar to the us in terms of gdp measured at purchasing power parity 3. these trends are also reflected in studies assessing what companies in developing markets will challenge the current global giants based mainly in the us, europe and japan. according to boston consulting group, the 100 ‘ global challengers ’ include 44 chinese, 21 indian and 12 brazilian companies. there are no polish companies on this list, even though it includes a few companies from egypt and turkey