We are still in the early stages of our research into whether and how climate change affects the transmission channels of monetary policy and could lead to bigger and more persistent shocks that could have consequences for price stability, among other things.
Fourth, forward-looking banking supervision can urge banks to ensure that they have an overview of the climate-related risks on their balance sheets, and that they do so on a continual basis and with reference to stress scenarios. This is the approach that European banking supervision is taking. c. Payments I have talked about the major challenges facing Europe.