Consequently, central banks should not take on credit risk unless there are good reasons for doing so in terms of providing necessary liquidity services or it is required in order to re-establish an effective transmission mechanism for monetary policy. Central banks have been made independent in order to fulfil a well-defined mandate.
I would also like to touch upon Greece’s experience over the past eight years and the key challenges for achieving a successful turnaround of the Greek economy in general, and the banking sector, in particular.