- Weak bank lending not because of lack of liquidity
- Very difficult for ECB to steer banks use of funds that they take in liquidity operations
- ECB can’t interfere in bank credit risk management
- There looks to be an agreement on SRM but ECB does not have enough information yet
- SSM will help restore confidence in banks
- ECB sees indications banking sector to restructure
- Total bank balance sheets shrank €3.3tn in year
- Bank assessments results will be credible
- Hopes that banks will be in a position to lend by 2015 as recovery progresses
Vitor Constancio speaking at an IMF book presentation in Frankfurt.
