In banking supervision, we have been persistently pushing the banks we supervise to close the gap between their practices and our expectations on the sound management of climate-related and environmental risks. Banks’ practices must be fully aligned with our expectations by the end of 2024 at the latest and we have set interim deadlines for banks to satisfy specific requirements even earlier.
If necessary, we will enforce these deadlines, standing ready to use all the supervisory instruments at our disposal. Let me be clear: as Vice-Chair of the ECB’s Supervisory Board, it is not for me to determine whom banks should lend to.