Such emphasis on highly aggregated sectoral data creates the risk that intermediaries seeking to reduce their carbon footprint indicators might reduce credit to companies belonging to high-emissions sectors indiscriminately, treating them all as unsustainable. A similar risk could also arise with reference to market instruments (shares and bonds), should sectoral data play an increasing role in the choices of other financial intermediaries.
This will help ensure that the European supervisor focuses on its objective to keep our banking system sound and stable, and has the instruments it needs to succeed. Economic stability Beyond financial stability, the euro area also needs economic stability. The ECB’s monetary policy is a necessary condition for economic stability, but it is not sufficient.