On the other hand, credit demand of private firms continues to lack momentum as the level of corporate expenditures such as business fixed investment remains below firms’ cash flow. Moreover, firms continue to reduce their debts as part of their balance-sheet restructuring measures. As a result, credit demand in the private sector has continued to be basically stagnant.
4  BIS central bankers’ speeches  entry between Europe and the US seem to explain 10 to 20% of Europe’s lag vis-à-vis the US with regard to total factor productivity and the capital-output ratio.8 Removing barriers to entry therefore holds the promise of substantial gains in productivity and welfare.