Let me quote our own Mid-term Review of the Annual Policy Statement announced on October 31, 2006, “Global imbalances have continued to widen during 2006. With some central banks actively reassessing their stance now, the potential drainage of global liquidity would test the resilience of world financial markets and weigh upon the outlook on the global economy.
In the area of banking supervision, this year the ECB has formally identified climate-related risk as one of the key risks facing the banking sector. Here, we will assess how the banking industry looks at climate change-related risks from a risk management perspective. And on this front, too, further knowledge is key.