But what banks need to ensure now is that this ambition is also translated into practice. This is the only way to remain sound in a net-zero carbon future.
Second, instead of increasing the pressure for structural reforms and policy adjustments needed to strengthen competitiveness in the periphery, market forces acted in the opposite direction:   The markets focused on the elimination of exchange-rate risk, while at the same time they mis-priced credit risk, underpinning large capital flows into the periphery and reducing interest rate spreads.