•  Sound risk management means that risks should be held on balance sheets that have the capacity to absorb these risks if they materialise. •  Banks and investors must take account of climate- and energy-related risks in their credit policies and capital allocation.
To this end, the Bundesbank regularly publishes a set of indicators on its website.3 Minimum debt sustainability standards should be imposed only once these indicators begin to show signs of a threat to the stability of the financial system. In order for such requirements to meet their target and to mitigate side effects, a careful assessment of the consequences will be necessary.