Graph 5  6  BIS central bankers’ speeches  While the relative cost of new long-term wholesale funds is currently higher than that of maturing funds, this has had only a moderate effect on the major banks’ average bond funding costs relative to the cash rate to date.
Even if mitigation strategies are put in place, societies and economies are likely to face increasing climate change-related disruptions and supply-side shocks. Apart from climate change itself, policy responses will affect macroeconomic activities as well, with implications for the financial system. We therefore look at climate change as a source of financial risk, both from the micro- and the macroprudential perspective.