The climate stress test10 found that while considerable progress has been made with respect to banks’ climate stresstesting capabilities, there are many deficiencies, data gaps and inconsistencies across institutions. Many banks also appeared to lack clearly defined long-term strategies for credit allocation policies that reflect the various transition paths, or are in the early stages of factoring climate risk into their credit risk models.
-  In Serbia, if inflation goes down, so will the key policy rate and, consequently, the cost of borrowing. This, however, will not resolve our problems but will only moderate their impact to a certain extent. Thank you for your attention! BIS Review 1/2009  3