For example, it could be done by incentivising banks to build up their capital ratios through cost rather than credit cuts (I will shortly provide an example of this, based on our recent experience at the Bank of Italy).
It could also be done by facilitating firms’ recourse to non-bank intermediaries (such as insurance companies) or by stimulating bond and stock issuance, in particular by SMEs.22  20  Slovenia is moving in the opposite direction, and at the end of June will introduce a minimum loan-to-deposit ratio, in order to slow banks’ deleveraging.