Banks have strong balance sheets that are able to support the economy through the downturn and into the recovery. Examples of this are in the ability to offer loan deferrals as well as the capacity to make provisions for future loan losses without compromising capital.
And rules at the EU level are being loosened so that governments can take the necessary measures to protect their people. The additional fiscal measures announced in the euro area4 since the invasion amount to 0.4% of euro area GDP this year.