On net, even allowing for the negative impact on net interest margins, the beneficial macroeconomic impact suggests an overall positive assessment of the impact of monetary policy during the pandemic on the health of the banking system.
In terms of the effects of asset purchases on market functioning, on balance, the effect of the purchase programmes on market liquidity and price formation, has been positive. Importantly, there is no evidence of a systematic negative impact on liquidity in euro area sovereign bond markets and price formation in these markets has remained intact.