This shows that our “intermediation role” has grown very significantly. We are now providing – and this is quite exceptional – unlimited refinancing to the banks of the euro area for maturities ranging from one week to six months in exchange for eligible collateral. This is a very important contribution to liquidity in the financial sector of the euro area.
Governments for their part have organised a second line of defence against what I have called “systemic solvency risk”. Key measures have included recapitalisations, guarantees and asset support schemes. The Eurosystem has issued recommendations on the appropriate framework for both government guarantees and recapitalisation measures. The aim is to support the banking sector in a way that avoids creating distortions in the Single Market.