must be no binding constraints on credit supply through the banking system. the more the recovery progresses, the more important it is that supply constraints ease so that the recovery can gather steam. given where we are in the cycle today, it is highly desirable that banks advance the structural adjustment of their balance sheets, so that they can meet demand for credit as it emerges. it is in part for this reason that we early on placed a great deal of emphasis on a timely comprehensive assessment of bank balance sheets, in the context of the creation of the single supervisory mechanism. frontloading bank balance sheet adjustment addresses capital constraints on credit supply. only banks that have fully accounted for legacy losses bis central bankers ’ speeches and hold sufficient equity can take on risk again and therefore originate and price loans in normal conditions. the comprehensive assessment, while still ongoing, has already had a catalytic effect on asset revaluation and provisioning and on capital raising. we expect it also to feed through into new credit as it reaches completion. meeting credit demand is likewise why we have publicly supported measures to revive high quality securitisation in europe. this complements the comprehensive assessment by helping remove capital constraints to loan origination. and it supports the development of capital markets, which will be essential to sustain credit supply while the banking system transitions towards a less leveraged, less risky model. the key issue today, however, is timing. we have to be mindful of mismatches between these various trends : the rise in demand for credit ; the repair of bank balance sheets ; and the development of capital markets as a complement to bank lending. credit demand may pick up more quickly than the other trends gain traction. if, in this context, availability of term funding is a limiting factor on loan origination, then monetary policy can play a bridging role. term - funding of loans, be it on - balance sheet – that is, through refinancing operations – or off - balance sheet – that is, through purchases of asset - backed securities – could help reduce any drag on the recovery coming from temporary credit supply constraints. conclusion let me conclude. what i have laid out today is a decomposition of the factors behind low inflation in the euro area, and how they interact, percolate through the real economy and may affect mediumterm price stability. at this point of the cycle, all three contingencies i have discussed remain topical and feature prominently in the discussions of the governing council members. certainly, any policy response

##tances in greece 3. juniper research : cross - border payments 4. visa global merchant ecommerce study 5. enhancing cross - border payments - stage 1 report to the g20 ( fsb report 2020 ) 6. enhancing cross - border payments - stage 2 report to the g20 - building blocks of a global roadmap ( fsb report 2020 ) 7. enhancing cross - border payments - stage 3 roadmap ( fsb report 2020 ) 8. targets for addressing the four challenges of cross - border payments ( fsb report october 2021 ) 9. trireme - dk findout! 10. speech : real - time payments in australia 11. rbi to give some non - banks access to payments systems 12. expansion of operating hours and associated changes for the fedwire and fedwire funds service s 13. sweden completes first phase of migration to tips 14. target consolidation : timeline 15. extending and aligning payment system operating hours for cross - border payments ( cpmi report may 2022 ) and improving access to payment systems for cross - border payments : best - practices for self - assessments ( cpmi report may 2022 ) 16. improving access to payment systems for cross - border payments : best - practices for self - assessments ( cpmi report may 2022 ) 17. extending and aligning payment system operating hours for cross - border payments ( cpmi report may 2022 ) 18. rtgs renewal programme | bank of england 19. roadmap for real - time gross settlement service beyond 2024