ECB and Climate Change: The Direction is Clear – But Ambition and Speed are Lacking
Pierre Monnin | 7 June 2021
Blog,
Monetary | Tags:
Central Banks,
Monetary Policy Operations,
Sustainability All public institutions urgently need to address the colossal challenges posed by climate change. Central banks are no exception, and their representatives are well aware of this.
Jens Weidmann, President of the Deutsche Bundesbank, for example, is convinced "that we can all do more to mitigate
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Systemic Risk Buffers – The Missing Piece in the Prudential Response to Climate Risks
Pierre Monnin | 1 June 2021
Monetary,
Policy Briefs | Tags:
Climate Risk,
European Systemic Risk Board,
Macroprudential Regulation,
Systemic Risks Climate-related financial risks can potentially destabilize the financial sector. This fact is acknowledged by the major international financial bodies – the Financial Stability Board (FSB), the Bank for International Settlements (BIS), the International Monetary Fund (IMF) – as well as by the Central Banks and
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Climate Financial Risks: Assessing Convergence, Exploring Diversity
Julia Anna Bingler,
Chiara Colesanti Senni and
Pierre Monnin | 9 December 2020
Discussion Notes,
Monetary | Tags:
Climate Risk,
Financial Supervision,
Monetary Policy Operations,
Risk Metrics Climate risks are now fully recognized as financial risks by asset managers, investors, central banks, and financial supervisors. As a result, the integration of climate risk metrics into risk management processes is moving up agendas worldwide. In that context, a rapidly growing number of market
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Central Banks Must Upgrade Their Risk Management
Pierre Monnin | 23 November 2020
Blog,
Monetary | Tags:
Central Banks,
Climate Change,
Climate Risk The COVID-19 crisis is a stark reminder of how sharply asset values can shift. Amid a crashing demand for oil and gas, giant energy companies like BP, Chevron and Shell massively wrote down the value of their assets. And those that did not, like Exxon,
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Central Bank Market Neutrality is a Myth
Chiara Colesanti Senni and
Pierre Monnin | 16 October 2020
Blog,
Monetary | Tags:
Asset Purchases,
Central Banks,
Climate Change,
Foreign Exchange Reserves,
Market Neutrality Christine Lagarde, the President of the European Central Bank (ECB), this week raised the critical question whether, in view of market failures, market neutrality should remain the guiding principle driving central banks’ policy portfolio management. Her spotlight on market neutrality underscores growing and overdue scrutiny
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