As mentioned earlier, climate change issues can have a significant impact on the business conditions of financial institutions, and hence on the stability of the financial system, through physical risks and transition risks. Please see Slide 5 for more details on the transmission channels.
Luis de Guindos: Outlook for the euro area economy and financial stability Introductory remarks by Mr Luis de Guindos, Vice-President of the European Central Bank, at the 34th edition of "The outlook for the economy and finance", organised by the European House - Ambrosetti, Cernobbio, 1 April 2023. *** Financial stability is essential to the ECB's primary objective of price stability.