Second, we need to organise and coordinate the work of the different global groups in order not to overburden the financial industry with a myriad of different information-collecting exercises. The NGFS could play a key role in this kind of coordination.
And, if no losses can develop, it is not necessary to establish capital buffers. All those who had trouble following this line of argument saw their doubts confirmed by the sovereign debt crisis in Europe. Whether we like it or not, we obviously need to rethink the assumption that loans to governments are risk-free. Consequently, it appears urgently necessary to change the rules.