Financial institutions will find it easier to exercise appropriate control of climate-related financial risks, and their  4  financial transactions will increase, if climate change risks are accurately reflected in financial asset prices through disclosures, product design, and reinforcement of transaction practices. This will lead to improvement in the financial intermediation function in the environmental field.
Having calculated their likely future losses, we have now required the banks to rearrange their affairs to ensure that they have ample capital reserves to ride out this period of losses. They are responding with plans that raise additional capital reserves and reduce the scale of their less central activities. The recapitalization and restructuring of the banks will be accomplished by end year.