The fiscal compact and other initiatives will ensure that deviations are to a larger extent exposed – and addressed. BIS central bankers’ speeches  1  So agreement between the euro area member states and other member states on the fiscal compact may help to boost market confidence in Europe in general.
Banks have been extending loans to households and businesses, with credit activity growing since August last year. Prudent lending standards of banks also help keep the rise in bad debts within manageable levels while ample capitalization enables them to absorb shocks. On digital transformation, the BSP or the central bank’s policy agenda include digitalization of the country’s payments system.