Monetary policy in support of corporate funding and investment?

Philippine COUR Principal economist, European Central Bank [vc_btn title= »Download the article » style= »outline » color= »blue » align= »right » i_icon_fontawesome= »fa fa-file-pdf-o » add_icon= »true » link= »url:http%3A%2F%2Fprod.confrontations.org%2Fwp-content%2Fuploads%2F2016%2F03%2FRevue-107-Monetary-policy-in-support-of-corporate-funding-and-investment-p9.pdf||target:%20_blank »] The monetary policy does not directly aims at corporates and today interventions of central banks target mostly banks and the assets they issue and/or sovereigns covered bonds. An irrevocable tendency? The answer from Philippine Cour. The European Central Bank (ECB) has taken a host of measures to address low inflation: it has lowered the main refinancing rate to virtually zero, offered targeted loans of up to four  years  for  banks  and announced    far-reaching purchase programmes for asset- backed securities (ABS) and covered bonds. Is this helping to ease bank credit and foster investment? The measures aim at facilitating credit flows to the economy, but the take-up in the first of the longer-term targeted loans last September was low and the contraction in bank balance sheets is ongoing in the euro area.