As far as it is possible to understand from a comparison of data that reflect very different national definitions, this is higher than the average level in Europe. The outcome, partly owing to increased reserve requirements, has been a dramatic fall in bank profits, while the riskiness of firms’ new credit demand has increased sharply. 3  Criscuolo, Gal and Menon (2014).
Earlier this month, the Bank initiated a series of workshops with a wide range of market participants on how best to coordinate efforts to improve the markets for asset-backed securities and other similar credit instruments.