ECB must focus on financing SMEs -Nowotny
VIENNA Dec 6 (Reuters) - The European Central Bank would welcome new instruments that would increase liquidity to small companies, an area where past monetary measures have had little effect, ECB policymaker Ewald Nowotny said on Friday.
Nowotny told a news conference the ECB was thinking about whether it could develop programmes similar to the Bank of England's funding for lending programme, where liquidity was targeted towards small and mid-sized enterprises.
"There is a need for special attention to those areas where expansive monetary policy has had little effect, in particular the financing of SMEs," he said when asked what instruments he preferred for future EBB action if needed.
"There it will also be very relevant whether we can connect to capital markets, namely through securitisation models," Nowotny said, adding that capital market instruments could be developed that could be used as collateral with the ECB. (Reporting by Georgina Prodhan and Michael Shields; Editing by Catherine Evans)
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