The ECB is also contributing towards a revitalisation of the asset-backed securities market in Europe, which would be an important avenue to further support credit flows in the euro area and for the credit transmission channel. Important further progress on the road to banking union has been made since the previous IMFC meeting.
Many economies have become more resilient and more capable of withstanding shocks, but financial markets themselves seem to have become more sensitive to real-time data. The past decade has been marked by episodes of financial volatility that have had the potential for trouble at a systemic level.