Banks still matter most - Bernanke

Federal Reserve Chairman, Ben Bernanke, says the Fed has retained the ability to control financing costs, despite the fact that nonbank lenders and capital markets have replaced banks as sources of credit for many households and businesses.

"Like banks, nonbank lenders have to raise funds in order to lend, and the cost at which they raise those funds will depend on their financial condition," which the central bank can influence, Bernanke said on 15 June.

Bernanke spoke at a conference on "Th