The global economy has been hit by severe shocks in the past few years, the geopolitical and macroeconomic situation is uncertain, and episodes of stress in financial markets in March of this year are casting their shadow. A transformation is needed in the real economy to effectively mitigate climate change and deal with the structural challenges of our time.
All of this has implications for our liberal economic and social order which go far beyond the financial sector. Banks cannot directly influence these conditions, but they need to adapt to them. You see, how banks and supervisors react is extremely important: robust banks that have a firm handle on their risks and a sound capital base are vital contributors to a successful transformation.