•  There is a clear risk of creating a dependency of banks on central bank refinancing, while the intention of the current policy is only to “help banks to help themselves”. It may also slow down necessary structural adjustments to the balance sheets of banks and, ultimately, to the business models of some financial institutions.
•  Risks to price stability will ultimately emerge from having this exceptional support in place for too long a period of time. For all these reasons, the ECB has an exit strategy in place to guide the process of phasing out our enhanced credit support. This strategy can be activated at any time. Let me elaborate.