However, since it is not easy and takes time for firms to raise return on capital and improve their balance sheets, the release of water from the dam cannot increase significantly. Yet I think that if household income recovers even moderately, there is a higher probability that the economy will return to a growth path led by business fixed investment.
The EBA is also currently developing a supervisory handbook which reflects best supervisory practices across the EU. The ECB is cooperating with the EBA to ensure that its own supervisory manual and the EBA handbook are consistent. Here again, the existence of the SSM has the scope to help the EBA’s work, as all SSM members will naturally converge in their supervisory practices.