in may 2016, compared with 1. 2 % in april. developments in loans to enterprises continue to reflect the lagged relationship with the business cycle, credit risk and the ongoing adjustment of financial and non - financial sector balance sheets. the annual growth rate of loans to households ( adjusted for loan sales and securitisation ) remained broadly stable at 1. 6 % in may, after 1. 5 % in april. the euro area bank lending survey for the second quarter of 2016 indicates further improvements in loan supply conditions for loans to enterprises and households and a continued increase in loan demand across all loan categories. furthermore, banks continued to report that the targeted longer - term refinancing operations had contributed to more favourable terms and conditions on loans. the monetary policy measures in place since june 2014 have significantly improved borrowing conditions for firms and households, as well as credit flows across the euro area. the comprehensive package of new monetary policy measures adopted in march this year underpins the ongoing upturn in loan growth, thereby supporting the recovery of the real economy. in the light of the prevailing uncertainties, it is essential that the bank lending channel continues to function well. to sum up, a cross - check of the outcome of the economic analysis with the signals coming from the monetary analysis confirmed the need to preserve an appropriate degree of monetary accommodation in order to secure a return of inflation rates towards levels that are below, but close to, 2 % without undue delay. monetary policy is focused on maintaining price stability over the medium term and its accommodative stance supports economic activity. as emphasised repeatedly by the governing council, and as again strongly echoed in both european and international policy discussions, in order to reap the full benefits from our monetary policy measures, other policy areas must contribute much more decisively, both at the national and at the european level. the implementation of structural reforms needs to be substantially stepped up to reduce structural unemployment and boost potential output growth in the euro area. structural reforms are necessary in all euro area countries, although specific reform needs differ across the individual economies. the focus should be on actions to raise productivity and improve the business environment, including the provision of an adequate public infrastructure, which are vital to increase investment and boost job creation. the enhancement of current investment initiatives, including the extension of the juncker plan, progress on the capital markets union and reforms that will improve the resolution of non - performing loans will also contribute positively to this objective. in an environment of accom

change for monetary policy transmission and price stability. second, the ecb will introduce environmental sustainability disclosure requirements for eligibility for collateral and asset purchases. third, we will adapt our risk assessment framework, our corporate sector asset purchases and the collateral framework for climate - related risks. during our review, we also addressed the communication of our monetary policy. we heard directly how our policies affect the lives of european citizens and their desire to better understand those policies. our last review took place well before smartphones were around, so there was a strong case for enhancing our communication with the outside world. you will notice some changes in the coming weeks relating to our regular communication. for example, a new, 2 / 3 bis central bankers'speeches more narrative - based, and more concise monetary policy statement will replace the introductory statement at our monetary policy press conferences. but also, our monetary policy communication geared towards the wider public will be adapted through a more visualised and more accessible approach. and, reflecting the successful experience with the listening events, the governing council intends to continue to interact on a regular basis with the public via eurosystem outreach events. the review of our strategy that we have just completed took place 18 years after the previous one. looking ahead, the rapidly changing world that we live in means that we cannot wait for another 18 years before undertaking the next review. a regular review cycle, with the governing council periodically reassessing the appropriateness of its monetary policy strategy, will ensure that the strategy remains fit for purpose. it will also further enhance the ecb ’ s transparency and accountability to european citizens. we intend to carry out the next assessment in 2025. the governing council yesterday also endorsed a longer explanatory overview note on the ecb ’ s monetary policy strategy, which will be published after the press conference. we are now ready to take your questions. 3 / 3 bis central bankers'speeches