Excessively volatile monetary policy likewise hampers longterm financing in the markets, and thus exacerbates the risk posed to real investment on the financing side. The criticism of the Eurosystem expressed in this connection also pays too little heed to the role played by the quantitative definition of price stability within the chosen strategy.
In some of the remaining areas of finance, SME lending in particular, corresponding developments require more time owing to the more complicated and work-intensive credit risk assessment. The regulatory and supervisory framework is becoming more harmonised across Europe, creating a level playing field for banks. In addition, there are specific trends and factors that are likely to touch housing finance, in particular (slides 34–35).