Long-term rates have declined considerably in response to the announcement, in line with our intention to further ease financing conditions in the euro area, rising somewhat very recently as part of market correction of earlier gains (see Chart 2).
Is it consistent with good business practice for the long-term relationship? Is it good for the overall recovery of the economy on which the banks depend for their long-term success? Admittedly, it is essential for the survival of banks that they achieve a sufficient return on the investment of funds, including equity (much of it owned by the Government, by the way).