Therefore, in the case where a medium- to long-term forecast of profits based on the current business model shows a difficulty in maintaining highly sustainable profits and an adverse effect on future solvency and loss-absorbing capacity, even if financial institutions currently have enough capital, it seems relevant to ask them to enhance their business performances toward improving their profitability.
Taken together, if we had not reacted proactively and forcefully, we would now presumably be in the middle of a severe financial crisis with devastating consequences for economic growth and employment in the euro area. Price and wage levels would probably have fallen significantly, running counter to our price stability mandate.