In their role as supervisors and guardians of ﬁnancial stability, central banks can help to ensure that ﬁnancial institutions adequately incorporate climate-related ﬁnancial risks into their risk management. But that is not enough. Just like the portfolios of private ﬁnancial institutions, climate-related ﬁnancial risks can affect the asset holdings of central banks, too.
Paradoxically, one cannot deny that once financial transactions and economic activity supported by these advanced information and communications technologies decrease, this causes a sudden unwinding. With respect to financial activity, financial institutions around the world are currently utilizing these advanced information and communications technologies to carry out a large volume of cross-border financial transactions and invest in a variety of financial assets.