• Impairment of bank lending channel hurts economy
• Banks should raise capital not reduce credit
• Market tensions are dampening economic growth
• Inflation pressures should remain modest
• Collateral shortages in some market areas
• Impact of rate cut weakened, Interest rate transmission mechanism is hampered
• ECB deposit facility at post-Lehman levels
• 3 year ECB loans are a “novelty”, Longer-term loans give banks a longer horizon
• No stigma attached to the ECB lending, facilities are there for banks to utilise
• Small to medium size banks are facing a collateral shortage
• ECB carefully screens collateral in order to protect it’s balance sheet
• Reaction to the recent EU summit has been more negative than it deserved
• Differences in EU sovereign spreads bound to remain
• Stability pact broken 60 times in 12 years, mustn’t happen again
• Eurozone faces short-term contraction, but governments are on the right track
• Summit decisions can make Eurozone credible
• Greece will remain a unique case
• EFSF must be fully equipped, made available and implemented as soon as possible
• ECB will act as agent for the EFSF
• Eurozone crisis not over, important to maintain momentum
• Central Banks have differing mandates, EU treaty prohibits ECB financing
• Clear path in decision-making boosts confidence
• ECB bond buying not infinite or eternal
• Won’t comment of performance or rating agencies