And we are seeing that banks that participated in last year’s two TLTROs have been reducing loans by less than in the previous year, and by less than non-participating banks, which have not altered their lending behaviour to the same extent.
On the quantity side, the less favourable assessment is a reflection of the lower than expected outturns for the TLTRO and a slower contribution from the outright purchases. This has meant weaker portfolio rebalancing effects than we foresaw in the original calibration of the package.