The reinstatement of the waiver and the ensuing cheaper refinancing of Greek banks, coupled with the inclusion of Greek government bonds in the ECB’s QE programme, are expected to have a significant positive impact (potentially amounting to about € million) on banks’ results over the next year.
Our policies are also improving the credit channel, confirmed by the fact that credit to the private sector is at last gradually picking up. The ECB’s monetary policy measures enhance financial intermediation in a number of ways. They lower funding costs for banks, which should make lending cheaper and more profitable, thereby boosting the volume of lending.