Low interest rates can make banks take more risks, leading to banking crises. Central banks may lower rates during crises to help weak banks, but this can create future credit bubbles. In the Euro area, low rates before the 2008 crisis made banks relax lending standards. This effect was stronger than other factors like long-term rates or deficits. Tighter prudential policies on bank capital or loan-to-value ratios reduced this impact. After the crisis, low rates helped banks with liquidity problems to ease lending conditions.