These less significant institutions, as they are known, or LSIs for short, account for less than 15% of the aggregate total assets of the euro area’s banking sector. In terms of quantity, however, they account for the bulk of the banking system.
There’s also the ECB’s Securities Market Programme, directed at promptly unblocking money market conditions. Clearly, then, this interface between fiscal and banking conditions is a fruitful area of policy research right now. Let me just mention two specific issues within this.