The applicability of these rules would be limited to certain financial services providers to be separately notified by the Government in consultation with regulators. 12. Our resolute efforts towards recognition, repair and resolution have resulted in nonperforming assets (NPAs) of the banking system declining for the first time in March 2019 after a gap of 7 years.
One important reason why monetary policymakers have been forced to take ever riskier action is the weak growth outlook for the euro area. According to estimates by the European Commission,1 the euro area’s potential growth over the medium term – in other words, over the next ten years – is a mere 1%.