The latest version of the plan modifies this provision by offering lower loss-sharing rates for loans that have loan-to-value (LTV) ratios above 100 percent at the time of the modification.
Correctly assessing these risks requires a higher quantity and quality of disclosures. Global and European efforts and guidance in this direction are extremely valuable. The ECB is contributing to the development of an analytical framework for climate risk assessment, and developing methods to gauge exposures to climate-related risks on the balance sheets of financial institutions.