The principal risk in banking relates, of course, to credit risk arising from lending. For most of this decade loan portfolios and bank earnings have been strong, helped largely by persistently strong economic growth. That performance has strengthened the industry’s financial statements and substantially improved its image with investors.
The European Commission estimates that reaching the 2030 climate target requires additional annual private and public investments of approximately 5 hundred billion of euros. This represents around 4 % of last year's GDP at the EU level an amount that could already trigger a new investment momentum in Europe.