For example, the difference between the average lending rate for firms in countries that were severely affected by the crisis versus other countries has narrowed by around 100 basis points over this period. The pass-through of monetary policy has become more even.
These positive developments have been further supported by the second series of targeted longer-term refinancing operations, as a result of which banks are passing on the favourable funding conditions to their customers.2 The sharp reduction in bank lending rates has been accompanied by easier access to funding, as recent surveys have shown.3 Moreover, bank lending volumes have been gradually recovering since early 2014.