In the years ahead, banks will reduce their dependence on short-term funding in the wholesale markets and focus more on serving domestic customers, says Nout Wellink, the president of the Dutch central bank in its latest Annual Report.

Wellink said that banks will tap local retail markets via local branches or subsidiaries, not only to reduce their dependence on wholesale funding, but to tackle problems inherent in cross-border financing due to currency mismatches and will tend to retreat to