Indeed, as financial institutions have maintained their active lending stance, the year-on-year growth rate of loans outstanding has been in positive territory. Yet, going forward, the Bank must consider monetary policy measures more carefully, to prevent financial system instability.
In doing so, it should examine closely the effects on the profits and lending stance of financial institutions of changes in their attitude to risk and of the current prolonged low interest rate environment, by taking into account not only the time frame in which monetary policy effects spread to the real economy, but also the time frame in which the side effects accumulate.