We are incorporating these items into our supervisory monitoring screens, and we assume market analysts are also making use of these public data for their own analysis of banking risk. Clearly, more can and should be done by banking organizations to demystify and clarify the risks they are taking.
Of course, safeguarding the profitability of banks is not a task of the Eurosystem. However, the pressure on bank profitability arising from negative interest rates could eventually cause banks to cut back on lending despite additional expansionary monetary policy measures, thereby impairing the transmission of monetary policy.