As stated above, compared to the United States, the supply of liquidity in the euro area adjusts more endogenously to banks’ demand for liquidity, and the ECB’s assets are of shorter maturity than the Fed’s assets. These features will facilitate reversing unconventional policy measures in a gradual and careful way, while monitoring the health of the financial system.
If I could make one wish here, it would be for digital innovation to factor in financial stability by design. The COVID-19 crisis is certainly providing an additional boost to digitalisation, particularly in the financial sector. But let me be clear: increasing use of online banking, digital payments and video chats with clients are by no means the digital transformation of the future.