The marketbased curve has tended to move by more both at the short- and long-end, whereas the survey-based curve has moved by less, particularly at the longer-end of the curve. Considering first the shorter-end of the curve, the one-year forward in one year (i.e., two years ahead) market-based measure declined by 1.1 p.p. between January 2013 and January 2015 and rebounded by 0.6 p.p.
Banks deserve special attention as they are, in continental Europe, the main suppliers of credit and financial services to individuals and firms. My argument will develop around two simple questions: •  How important is relationship lending in the euro area?