To ensure an adequate transmission of monetary policy to the financing conditions in the broader economy, it is essential that effective measures be taken to further reduce fragmentation of euro area credit markets and to strengthen the resilience of banks where needed.
Monetary policy contributes to these objectives, but it can only address impairments in transmission insofar as they are not related to more structural barriers. By giving unlimited access to central bank refinancing against adequate collateral, our nonstandard measures have been pivotal in relieving bank funding stress.