Notes: Dotted green line excludes the impact of changes in taxation in the United States. “Scandinavian countries” include Denmark, Norway and Sweden. The latest observation is for 2018. Nonetheless, the Governing Council is closely monitoring the risk that the impact of negative rates on bank profitability may impair the transmission of monetary policy to the real economy.
Moreover, the ECB decided last September to introduce a two-tier system for remunerating excess liquidity holdings, with the aim of supporting the bank-based transmission of monetary policy.