Program: Monetary

Integrating Climate Risks into Credit Risk Assessment: Current Methodologies and the Case of Central Banks Corporate Bond Purchases

| 21 December 2018
Discussion Notes, Monetary | Tags: Climate risk, Credit risk, ECB Corporate Sector Purchase Programme
Climate change, and the transition to a low-carbon economy that can mitigate it, engender significant economic costs. These costs are ultimately borne by households and firms. They affect households’ and firms’ cash flows and wealth, which are key determinants of their credit worthiness. Climate-related costs ... continue reading

Central Banks Should Reflect Climate Risks in Monetary Policy Operations

| 10 September 2018
External, Monetary | Tags: Asset purchases, Central Banks, Climate risk, Collateral framework
The transition to a low-carbon economy requires a shift in capital allocation from incumbent carbon-intensive technologies to new low-carbon technologies. Financial markets play a key role in this process: they influence firms’ investment costs and serve as reference point in investors’ decisions. Currently, there ... continue reading

Climate Change and Finance: What Role for Central Banks and Financial Regulators?

, , , , and | 7 September 2018
External, Monetary | Tags: Central Banks, Climate Change, Environment, Financial Regulation
Climate change poses risks to the financial system. Yet our understanding of these risks is still limited. As we explain in a recent paper published in Nature Climate Change, central banks and financial regulators could contribute to the development of methodologies and modelling tools for ... continue reading

Financial Stability and Inequality: A Challenge for Macroprudential Regulation

| 5 June 2018
Blog, Monetary | Tags: Central Banks, Financial Regulation, Financial Stability, Inequality, Macroprudential Regulation
The global financial crisis shed new light on the role that central banks play for financial stability. In response to the financial turmoil, central banks took radical action to stabilize the financial system, by providing liquidity to banks and buying up financial assets. Following these ... continue reading

Scaling up Green Finance: The Role of Central Banks

8 – 9 November, 2018. Co-organized with the Central Banks and Supervisors Network for Greening the Financial System
Monetary, Workshops | Tags: Central Banks, Climate Change, Green Finance
The transition to a low-carbon economy requires shifting trillions from brown to green activities. Several reports estimate that more than USD 90 trillion will be needed to adapt our infrastructure in a way that is consistent with the 2°C scenario. Given that the horizon of ... continue reading