This development was supported by legislation that has enabled banks to convert a portion of their deferred tax assets into tax credits when such assets are sold. Because of the ongoing restrictions on economic activity, rendered necessary to contain the risk of infection, the Government has extended the moratoriums introduced in March 2020 until next June.
BIS central bankers’ speeches  3  these actions encourage spending by households and businesses through essentially the same channels as conventional monetary policy. A wide range of market indicators supports the view that the Federal Reserve’s recent actions have been effective.