The group’s objective is to enhance the capability of the financial system to mobilise private capital for green or low-carbon investment. A “green economy” will require a capital-intensive transition, with investments in new skills, institutions and technologies. While public funds are important, they can only provide a small share of what is required.
The core of the financial sector appears resilient, with leverage low and funding risk limited relative to the levels of recent decades. At the end of this week, we will be releasing our third Financial Stability Report, which shares our detailed assessment of the resilience of the U.S. financial system.