The euro zone is gradually learning to do without banks

A debate has started between economists and the ECB as to whether the euro zone’s zero or negative interest rates ultimately have had a restrictive influence o n the zone’s economy by weakening banks. But this debate is in reality becoming less important as the euro zone is increasingly learning to do without banks: Companies are self-financing their investments and increasingly using market financing; The level of household housing investment is so low that the euro zone’s household debt ratio has no need to rise.