Unconventional monetary policy measures restore lending in euro area banks.
The article discusses how changes in banks' balance sheets affect the transmission of monetary policy in the euro area. During the crisis, traditional interest rate cuts had less impact due to weak bank balance sheets, but unconventional measures helped restore transmission. These non-standard measures boosted lending and had varying effects on different bank business models. Overall, recent monetary policy actions did not significantly harm bank profitability when considering their effects on the economy and asset quality.