First of all, it is important to keep in mind that the situation in Greece is exceptional in various aspects, and for these reasons the measures taken should not be extrapolated to other member countries. Furthermore, from a central banker’s perspective, it is to be welcomed that the European Council announced its intention to ensure sufficient capitalisation of banks and adequate collateral.
For the Eurosystem’s refinancing operations, solvent counterparties and sufficient collateral are crucial. When I mention counterparties, please allow me to briefly address one current point of interest in financial markets on both sides of the Atlantic: US dollar funding of European banks. This is certainly an area that relevant authorities, including the Bundesbank, monitor closely.