Recapitalizing banks is necessary to this end, but it is not sufficient; there is a need to think about new, even unconventional instruments. This last point is especially pertinent for Italy, where neutralizing the complex financial instruments whose value has plunged is of limited relevance and finding instruments that directly affect the availability of loans for firms and households is more important.
Moreover, the report includes the description of the features of the ESCB’s minimum reserve system and sets out specific provisions to be applied for the ESCB’s monetary policy instruments and procedures in the transition to Stage Three.