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

rate mortgages ranges from less than 20 % in france and germany to more than 80 % in luxembourg, the netherlands, portugal and slovakia ( see ehrmann and ziegelmeyer ( 2013 ) ). the great variety of households revealed by household - level data stands in sharp contrast to the stark representation of consumers in many dsge models ( especially those of the first generation ), in which consumption smoothing or intertemporal substitution is typically governed by a single parameter that is often calibrated in an ad hoc manner. the experience of the great recession, in which individual households were subject to different income, interest rate and wealth shocks that generated responses that differed from those recorded in previous recessions, suggests that we should take household heterogeneity seriously. to conclude, the eurosystem ’ s household finance and consumption survey provides researchers with an invaluable source of information that will make it possible, by way of a cross - country perspective, to enhance our knowledge about the effects of specific monetary policy measures on the financial and economic decisions taken by households. thank you for your attention. for example, ehrmann and ziegelmeyer ( 2013 ) estimate that a 300 basis point cut in interest rates would result in a substantial reduction of the median debt - service burden, in particular for households in the lowest income quintile where the ratio of median debt service to income would otherwise have been 44 %, rather than the observed 32 %. bis central bankers ’ speeches references anderson, e., inoue, a. and rossi, b. ( 2013 ), “ heterogeneous consumers and fiscal policy shocks ”, cepr discussion papers, no 9631, centre for economic policy research. blundell, r., pistaferri, l. and preston, i. ( 2008 ), “ consumption inequality and partial insurance ”, american economic review, no 98 ( 5 ), pp. 1887 – 1921. blundell, r., pistaferri, l. and saporta - eksten, i. ( 2012 ), “ consumption inequality and family labor supply ”, nber working papers, no 18445, national bureau of economic research. broda, c. and parker, j. ( 2012 ), “ the economic stimulus payments of 2008 and the aggregate demand for consumption ”, mimeo, northwestern university. carroll, c., slacalek, j. and tokuoka, k. (