First, the recent crisis has shown that deposit insurers should play a proactive role in regulatory frameworks for early identification of bank failures and their effective resolution with the aim of protecting their funds and maintaining public confidence.
From a socially optimal perspective, green investments may also be underfinanced if market participants make investment decisions based on excessively short horizons. Moreover, scale, 3/6  BIS central bankers' speeches  liquidity and reliable benchmarks can considerably improve market functioning. Public sector intervention at the creation of such markets can provide the right framework to help kick start private-sector involvement.