Changes in asset prices can also have consequences for financial stability. We know from the experience of the late 1980s that a large fall in commercial property prices can result in some large firms running into serious financial difficulties, with major consequences for financiers and banks. It is important that our financial system is robust enough to withstand such shocks.
We all know that the lack of consistent and granular data continues to be an obstacle that complicates the adequate calibration of shocks in stress testing models. Central banks and supervisors can play a part in overcoming this obstacle. Last summer, the NGFS launched a directory for climate data with over 700 links to relevant data sources.