Der Spiegel
Interview with Sabine Lautenschläger, German member of the Executive Board of the European Central Bank (ECB) --
I do not expect that the ECB purchasing government bonds on a large scale would change that [corporate lending] in a sustained manner. Instead, banks must again be in a position to see that their borrowers have decent economic prospects.
Q: How could that be brought about?
Above all, national governments could contribute to this goal by implementing effective structural reforms to improve the competitiveness of industry. If a company is competitive, it has a future, the risk of default is lower and banks extend loans with lower risk margins.
I do not expect that the ECB purchasing government bonds on a large scale would change that [corporate lending] in a sustained manner. Instead, banks must again be in a position to see that their borrowers have decent economic prospects.
Q: How could that be brought about?
Above all, national governments could contribute to this goal by implementing effective structural reforms to improve the competitiveness of industry. If a company is competitive, it has a future, the risk of default is lower and banks extend loans with lower risk margins.