In December, however, loans to firms contracted by about € billion. The decline is very large by historical standards, although it may have depended in part on the usual volatility of end-year data. Lending to households diminished only slightly. Preliminary data indicate a slight further contraction in credit in January.
This approach applies, not only to our efforts thus far, but also to the efforts that we—and the financial sector—will make to support households and businesses in the months ahead. It is worth a moment to acknowledge the profound effects of this crisis on the nation’s financial system and economy.