"This is the first time in three years that a major crisis in one euro area country has not affected others", said Noyer. "While challenges remain, the actions taken have increased our resilience to internal and external shocks. Overall, the improvement in banks' funding situation has not led to increased lending to the non-financial private sector, which has declined in recent months."
Part of this is due to low demand and it may not reflect a weakness specific to the euro area as banks in all advanced economies try to repair their balance sheets after the global financial crisis, said Noyer. Ultimately, growth in the euro area will depend on the ability to undertake the necessary structural reforms and enhance competitiveness.
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