mercoledì 14 dicembre 2016

ECB: "Both central banks and banks can create money"

Interview with Die Zeit

Interview with Peter Praet, Member of the Executive Board of the ECB, conducted by Lisa Nienhaus and Mark Schieritz on 12 December and published on 14 December 2016

"Both central banks and banks can create money through lending to the economy. If the banks are only doing so hesitantly, we can make financing conditions more attractive and so create incentives for more generous lending."
Italy is already causing us concern today. The big problem is the ailing banks. The new Government is considering State aid. Does that make sense? 

"The European rules permit that. Even Germany put public money into the banks at the height of the crisis. At that time, Italy did not. In my view, much more important than the question of where the money comes from is that there is a clear-out in the banking sector. There are too many banks in Italy and they are not profitable enough."

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