But corporate governance will be the deciding factor in the ability of a bank to meet the challenges. BCBS has added a separate principle on corporate governance in its core principles for effective banking supervision which were revised in 2012. It is interesting to note that before 2012, there was no separate principle on corporate governance.
It is important for us that promoting the greening process does not take place through the back door via financial market regulation and banking supervision. This is something we will watch out for when the action plan is implemented. Instead, policymakers can use other, traditional instruments such as tax incentives to foster the development of green economic sectors.