These interventions have served to considerably ease the downside pressures to price stability by avoiding an abrupt credit crunch stemming from sudden shortages of liquidity and funding for banks. However, at times, the effectiveness of monetary policy itself has been hindered by financial fragmentation, in particular against the backdrop of a sovereign debt crisis in some euro area jurisdictions.
As a result, the accommodative monetary policy stance set by the Governing Council has affected firms rather unevenly. The ECB will provide ample liquidity as long as needed, but market participants have to continue their efforts to facilitate the transition to a less central-bank reliant, more market-based financial system.