In fact, this risk transformation offered by credit intermediaries is the cornerstone of credit intermediation which facilitates pooling of savings for being lent for various economic activities. In credit markets, the lenders’ knowledge of a borrower’s likelihood to repay (risk profile) is imprecise and has to be estimated based on available information.
This has been, and remains, the ECB’s commitment to its mandate. The ECB has also made a major contribution to financial stability and, in this way, to creating trust, especially during the crisis. Today few would argue that without the measures taken by the ECB during these five years, we would be talking about a 1930s-style economic depression.