A functioning ABS market can therefore make an important contribution to ensuring that our monetary policy has an impact right across the real economy. This brings me back to my initial hypothesis – namely that monetary policy in the euro area may work better if other policy areas play their part.
12  From year-end 2007 to June 2012, the number of banks with assets under $ billion declined 15 percent from 7,188 to 6,110. 13  In 2011, 56 percent of the conventional home-purchase loans by small community banks and about 40 percent of those originated by larger community banks were held in portfolio as compared to 30 percent for the largest banks.