I would like to outline what the main features of the future SRM should be. In order to prevent any potential conflict of objectives, this mechanism should under no circumstances be placed with the ECB. Its institutional and geographical scope, however, should replicate that of the SSM.
Moreover, new developments relating to corporate finance have been taking place recently; both the issuance of corporate bonds with a maturity of over ten years and firms’ borrowings through subordinated loans have increased. The negative interest rate policy thus far seems to have succeeded in lowering funding costs of firms and households.