As part of our broad assessment of the banking channel, we examine a wide array of indicators on lending conditions, through information on bank balance sheets, the evolution of lending and deposit rates and survey-based measures. Our assessment is driven both by incoming data, but also broader modelling of bank lending conditions to create a forwardlooking assessment.
We combine macro-level data examining aggregate euro area credit developments and micro-level data that allows for variation across banks and different sectors of lending. The BLS plays a key role in our analysis, since it allows us to separate the demand and supply components of credit developments.