The higher excess liquidity thus created gives the process additional impetus. And together with the negative interest rate on deposits, the package of measures adopted creates incentives for banks to no longer park their excess liquidity at the ECB, but rather to extend credit or to seek other productive investment opportunities.
The further reduction of our key interest rates in June was combined with measures to ensure that the monetary easing actually reaches those who need it most, namely enterprises still suffering from credit terms and conditions that, despite the accommodative monetary policy, remain clearly more restrictive than those for enterprises with comparable risk profiles in other euro area countries.