The transition to a green economy poses inevitable risks to banks, says Supervisory Board Vice-Chair
@FrankElderson
.
It is crucial for banks to identify, measure and manage their transition risks, just as they would for any other risk.
Nature is in danger. But why is this relevant for the ECB?
Our host Stefania Secola and Executive Board member Frank Elderson discuss nature loss, its impact on businesses and banks – and what the ECB can do about it – on
#TheECBPodcast
Tune in
Price stability can only be preserved if the climate and nature are stable, says Executive Board member
@FrankElderson
.
Climate change can severely affect monetary policy, so a timely and smooth green transition is vital
@FrankElderson
: We have told banks to remedy the shortcoming by a certain date, and if they don’t comply, they will have to pay a penalty for every day the shortcoming remains unresolved
A number of banks have not delivered within our March 2023 interim deadline to assess their climate and environmental risks, says Supervisory Board Vice-Chair
@FrankElderson
.
In the euro area, 75% of corporate loans are exposed to
#biodiversity
loss and ecosystem degradation. Central banks and supervisors cannot ignore nature-related risks to the economy and to financial stability
📗 The
#NGFS
has today published the fourth phase of its long-term macro-financial
#climate
#scenarios
.
The new vintage of the NGFS scenarios will be presented and discussed during a launch
#event
on 9th November.
Register to the event:
Read more⤵️
Coming up at 9:40 CET:
@FrankElderson
joins a panel on “Biodiversity and climate: Shifting the way we do finance with nature at its heart” at the European Business & Nature Summit in Milan, Italy.
Register to follow live
New
@ecb
Research Bulletin: “The outlook is mixed: the asymmetric effects of weather shocks on inflation” by M. Ciccarelli, F. Kuik and C. Martínez Hernández
Tune in at 9:40 CET: President Christine
@Lagarde
opens the Conference on Ensuring an Orderly Energy Transition, organised together with the
@IEA
and the
@EIB
.
Follow the webcast
Reflecting on his childhood summers spent on the island of Terschelling, ECB Executive Board member
@FrankElderson
emphasises the need to take urgent action against climate change.
Read the speech
Er is reden voor hoop….alle Europese centrale banken en alle toezichthouders beamen dat klimaatverandering onder hun verantwoordelijk valt en dat is hoopvol. Maar we moeten alles op alles zetten
@FrankElderson
directielid
@ecb
#springtij
#hetmoetenhetkan
Today we took these monetary policy decisions:
🔹We raised our key interest rates by a further 0.25 percentage points
🔹Our future decisions will depend on how we see the economy and inflation developing