There are two major risks: first, postponement in bank balance sheet repair; and second, bubbles in asset prices. The first risk is that cheap funding allows banks to back-load the deleveraging of their balance sheets. After a financial crisis, banks have to undergo a thorough clean-up.
On this point, one view is that exploring new areas and creating new added value should be part of firms’ growth strategies. These strategies of exploring new, uncontested market places are known as “blue ocean” strategies. The search for such “blue oceans” is essential for sustainable productivity growth.