FRANKFURT, April 25 The European Central Bank
could be part of a push for wider use of asset-backed securities
(ABS) to ease credit availability for smaller firms, European
Central Bank Executive Board member Yves Mersch said on
Mersch, in a guest column in the Financial Times, also wrote
that governments have to be in the driving seat in reforming the
euro zone economy, not the ECB.
He said that to ease credit availability, a new asset class
of securitised small business loans could be created, and the
ECB could play a role in this.
"Funding aid for sound pools of small business loans could
be provided by development banks on the national and European
level, possibly supported by liquidity from the ECB within its
ECB policymakers have been worried about lack of access to
bank loans by small firms, especially in southern European
countries mired in the debt crisis, and ECB President Mario
Draghi has said the bank is looking at various options.
Mersch also warned against expecting too much from the ECB,
saying governments are in charge of economic reform.
"Calls are becoming louder for the ECB to introduce new
tools, swallow ever more risk and start economic fine-tuning,"
"But this would be a diversion. The successful measures
taken by the ECB are there to buy time for the political
authorities to fix the governance framework and implement
(Reporting by Sakari Suoninen; editing by Stephen Nisbet)