They have enabled a longer period of low interest rates unmarked by any significant negative side-effects on financial stability. Policy responses to the crisis The crisis in the euro area has been characterised to a large extent by feedback loops between the financial and real sides of the economy.
Two main things are driving us here. First, we have all seen enough incidents where operational failures have disrupted the payment system to cause us concerns. Some of these have arisen in individual banks, both large and small, but have had the potential to spill-over and affect other participants, and/or require emergency liquidity support.