Macroprudential Policy for a Low Carbon Economy: The Case of Cross-Border Funding in China
Isabelle Jiani Zheng and
Pierre Monnin | 24 April 2026
Monetary,
Policy Briefs | Tags:
China,
Decarbonization,
Macroprudential Policy Understanding how macroprudential frameworks can be designed and adapted to support cross-border flows is therefore an increasingly pressing question for policymakers. This paper distills the lessons from China on how to do so.
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Upgrading Housing: the Potential and Limits of Borrower-Based Measures
Pierre Monnin,
Ádám Banai,
Kristīna Bojāre,
Ján Klacso,
Reiner Martin and
János Szakács | 3 March 2026
Monetary,
Discussion Notes | Tags:
Credit Risk,
Energy,
Financial Stability,
Housing,
Macroprudential Policy This paper explores how borrower-based measures (BBMs) can be adjusted to provide additional funding for housing-related energy-efficiency investments without compromising financial stability objectives.
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The Macroprudential Response to Climate Systemic Risk: Four Essential Pillars
Laura Bartolomeu,
Wildmer Gregori,
Pierre Monnin and
Fátima Silva | 26 February 2026
Monetary,
Policy Briefs | Tags:
Climate Risks,
Financial Stability,
Macroprudential Policy,
Portugal,
Systemic Risks While existing macroprudential policy toolkits can already be deployed to address climate-related systemic risk, their implementation shall account for the data available to assess climate-related risks, the state of knowledge about them, and the institutional frameworks in which macroprudential instruments operate.
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Unlocking Doors to Better Homes: Smarter Borrower Limits for Housing Upgrades Across Europe
Reiner Martin and
Pierre Monnin | 15 October 2025
Monetary,
Blog | Tags:
Credit Risk,
Energy,
Financial Stability,
Housing,
Macroprudential Policy Upgrading the energy efficiency of Europe’s homes is a cornerstone of the European Union’s strategy to achieve climate neutrality. Buildings account for about a third of the EU’s energy-related greenhouse gas emissions, making them one of the largest contributors to climate change.
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Beyond Data: A Macroprudential Policy to Break the Tragedy of the Horizon
Pierre Monnin | 10 October 2025
Monetary,
Op-Eds | Tags:
Central Banks,
Climate Risks,
Financial Supervisors,
Macroprudential Policy Ten years ago, in his speech ‘Breaking the Tragedy of the Horizon’, Mark Carney, then Governor of the Bank of England – and now Prime Minister of Canada – issued a warning: climate change is ‘imposing a cost on future generations that the current generation
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A Macroprudential Approach to Compound Climate Risks
Paul Hiebert and
Pierre Monnin | 5 September 2025
Monetary,
Policy Briefs | Tags:
Climate Risks,
Financial Stability,
Macroprudential Policy,
Systemic Risks Macroprudential authorities can make an integral contribution to a more resilient financial system capable of withstanding the evolving challenges posed by climate change, economic shocks and their complex interplay.
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Principles for Addressing Climate Systemic Risks with Capital Buffers
Satoshi Ikeda and
Pierre Monnin | 10 October 2024
Monetary,
Policy Briefs | Tags:
Central Banks,
Climate Risks,
Financial Stability,
Financial Supervision,
Macroprudential Policy,
Systemic Risks Some supervisors have started exploring and assessing the different macroprudential instruments available to address climate systemic risks. Systemic capital buffers emerge as one promising option among the different instruments in their toolkits.
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Transition and Systemic Risk in the South African Banking Sector: Assessment and Macroprudential Options
Pierre Monnin,
Ayanda Sikhosana and
Kerschyl Singh | 22 July 2024
Monetary,
Research Papers | Tags:
Central Banks,
Climate Risks,
Financial Stability,
Macroprudential Policy,
South Africa This paper presents the main transition risks for the South African banking sector, highlighting that the coal value chain is central to these risks. It assesses the banking system’s exposure to transition risks in the corporate sector, showing that they are material and widespread.
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Aligning Sovereign Bond Markets with the Net Zero Transition: the Role of Central Banks
Pierre Monnin,
Joseph Feyertag,
Nick Robins and
Alexander Wollenweber | 14 March 2024
Monetary,
Policy Briefs | Tags:
Central Banks,
Climate Risks,
Debt,
Financial Supervision Aligning sovereign bonds with net zero requires coordinated action by several stakeholders across the financial system. National governments are first in line to act but central banks have a unique opportunity to make a meaningful contribution.
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Net Zero Central Banking in Africa’s Diverse Economies: Challenges, Opportunities and Policy Options
Reuben Wambui,
Joseph Feyertag and
Pierre Monnin | 29 November 2023
Monetary,
Policy Briefs | Tags:
Africa,
Central Banks,
Climate Risks,
Financial Stability,
Inequality Africa’s economies are contending with a diverse set of challenges and opportunities in relation to building low-carbon, green economies and the transition to net zero emissions. Central banks can play a pivotal role in enabling the green transition in Africa.
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