6  BIS central bankers’ speeches  Impact of demographic changes on fiscal balance A natural impact of Japan’s demographic changes is deterioration in fiscal balance. It is clear that the rapid pace of population ageing in Japan, especially since the 2000s, has been the single driving force behind growing social security-related expenditure (i.e., public pension benefits, elderly care, and medical services) (Chart 11).
We should do our utmost to acknowledge, assess and act upon climate change-related risks within our mandate, but we should not be obliged, for example, to promote green finance by granting banks preferential capital treatment if this is not justified by the specific risks linked to green finance.