Record-high inflation and acute labour shortages seem to have strengthened workers’ resolve to protect their purchasing power. In the first half of this year, growth in nominal compensation per employee has accelerated to levels not seen since the introduction of the euro (Slide 6, right-hand chart).
Currently, the capital ratios of banks, in general, are considerably above the level required by regulation. However, banks, when actually making loans, consider not only their capital ratios at the time but also various other factors such as expected future credit costs.