I’m going to speak to three drivers of this disparity, and three ways that the financial services community should work together to address them. Treasury Announces $ Billion in New Markets Tax Credit Awards to Revitalize Low-Income and Distressed Communities. U.S. Department of the Treasury, Community Development Financial Institutions Fund. October 26, 2022. https://www.cdfifund.gov/programstraining/programs/new-markets-tax-credit/award-announcement-step.
As I said before, we also need them in Europe, and as soon as possible. Regarding the second objective, we also have to revert to regulation. We have to adapt regulatory requirements in order to protect banks from government finances running into difficulties. If we are looking to offer banks greater protection against distressed public finances, it is government bonds we must target.