However, it has not reached the levels seen in some other emerging countries, particularly in Asia. Furthermore, the banking sector’s foreign assets and liabilities remain relatively low, at 14 and 10 per cent of the banks’ total balance-sheets respectively, which means banks enjoy a positive “buffer” of net foreign assets.
The extension of central bank credit provision to longer maturities, up to one year in June 2009, replaced market inter-temporal trading, which had largely disappeared. (See slide 14). Important for the design was the structure of euro area, where small and medium-sized enterprises are particularly important for growth and job creation and banks provide most of the financing.