By contrast, euro-denominated securities under the monetary policy purchase programmes grew again, by € billion, particularly on account of the PSPP and PEPP government bond purchases in the first half of the year. Another factor driving balance sheet growth in the two previous years was liquidity inflows from other European countries.
As banks have extended their range of activities and involvement in new markets, including the markets for securitized assets, they must, for a number of reasons, be particularly mindful of the potential for concentrations of risk to arise. First, there is simply less information available to evaluate risks on new activities.