Our general view is that the financial sector has a robust capital base relative to risks taken and its resilience in the face of stress is sufficient, and thus it could undertake positive risk taking and portfolio rebalancing under QQE with a negative interest rate framework. At the same time, we believe that the contraction risk at present is also small.
The stock of confidence gained by the ECB has helped to limit the prevailing fears and doubts concerning EMU, especially in Germany, so that today more and more residents are regarding the European Central Bank as a worthy successor to the Bundesbank. -V-  BIS Review 29/1999  2  What, then, are Germany’s expectations of the transition to a single currency in Europe?