The key point is that this investment will need to be financed. And, while there is a role for public investment, a significant part of the adjustment will fall to the private sector. This is where the opportunity for finance lies. To meet this challenge, the financial sector will need to innovate – just like the rest of the economy.
At Danmarks Nationalbank we are interested in this issue because money laundering can jeopardise financial stability. Customer and investor confidence is an essential prerequisite for providing financial services. So, loss of confidence can be very harmful for a bank. If confidence in a single participant is eroded, this may rapidly have an impact on the rest of the sector.