The role of central banks  As I highlighted at the beginning of today’s speech, only structural measures can overcome the structural problems afflicting Europe’s banking sector. Monetary policy – and this is something I would like to be quite clear about – cannot resolve these structural problems in the financial sector, for we have neither the tools nor the mandate to do so.
Being a central bank we cannot rectify the solvency problems of distressed institutions. But what we can do is combat temporary liquidity shortages. Back in November 2013, the ECB Governing Council, of which I am a member, agreed to continue the full allotment policy at least until the middle of 2015.