ecb speech, 2023-11-09
In particular, a durable level of central bank reserves is likely required to ensure the sufficient provision of bank credit to enable the euro area economy to attain its steady-state potential output growth rate, in view of the importance of central bank reserves in underpinning the willingness of banks to extend credit in spite of the risks associated with illiquid assets (Such as bank loans) in a world much more prone to macro-financial shocks.
Sentiment: neutral
Topic: mp_credit