At a time when all risk measures (probabilities of default of collateral issuers and counterparties, correlations, expected loss, VaR-measures) have gone up dramatically and financial institutions are cutting credit lines and are increasing margin requirements in the interbank market, the central bank becomes the lender of last resort. In such a situation its risk taking increases considerably.
But we cannot assess the success of our actions based on our point of departure. We need to judge our progress based on what is necessary to reach our destination in time. And we unfortunately cannot say that we are ahead of schedule. Droughts, floods, heatwaves, and biodiversity loss are undeniably on the rise as very real manifestations of the climate and environmental crises.