In fact it seems to be concerned about financial stability and growth as well as price stability. Is the ECB now pursuing a triple objective? Not at all. First, in the current environment, where inflation is too low, the objective of growth is equivalent to the objective of price stability.
Lack of transparency about the extent of exposures compounded uncertainty, preventing market participants from distinguishing good banks from bad banks, leading to a decline in trading in a real-life version of Akerlof’s “lemon market”. In addition, conduits had become over time increasingly reliant on the issuance of short-term paper for the funding of their securitisation activities.