[21] However, these losses appear to be manageable across the banking sector as a whole. In essence, these results therefore corroborate earlier Bundesbank climate risk analyses. [22] One reason for this is that loans to sectors that are particularly exposed to climate risk account for around 9% of corporate loans overall. Individual institutions, by contrast, may be hard hit.
The maintenance of open and competitive markets should also be an important goal of public policy. Such markets are a prerequisite to maximizing both the quality and the quantity and minimizing the cost of products and services consumed by households, businesses, and government. This is no less true in banking than in any other line of business.