6  “Basel III Capital: A Well-Intended Illusion”, remarks by FDIC Vice-Chairman Thomas M. Hoenig to the International Association of Deposit Insurers, 2013 Research Conference in Basel, Switzerland. 7  Changes in banks’ share prices and overall stock market in the euro area (from early April to end 2013).
Turning to the monetary analysis, broad money (M3) growth increased to 8.9% in May 2020, from 8.2% in April. Strong money growth reflects bank credit creation, which continues to be driven to a large extent by the acute liquidity needs in the economy. Moreover, high economic uncertainty is triggering a shift towards money holdings for precautionary reasons.