Monetary Policy and Banks in the Euro Area: The Tale of Two Crises

摘要: Abstract The paper is a narrative on monetary policy and the banking sector during two recent euro area recessions. It shows that while in episodes of recession financial stress ECB acted aggressively providing liquidity to banks, second recession, unlike first, has been characterized by an abnormal decline loans with respect both real economic activity aggregates. conjectures this fact explained postponement adjustment sector. over 2008–2012 period, did not change neither capital asset ratio nor size their balance sheet relative GDP keeping them at pre-crisis level. also describes other aspects banks’ crises pointing progressive dismantling integration involving inter-bank market since first crisis for government bonds second.