In any case, the euro will considerably change the landscape of banking in Europe. There will be some degree of polarisation between a few big players in global investment banking and a bigger number of smaller credit institutions active in retail banking. IV. These internal changes in the financial services industry in Europe will also enhance the external significance of the euro.
The distribution of liquidity to entities without access to the deposit facility is amplified by our asset purchases, which mechanically channel liquidity to large financial institutions located outside of the euro area.