At the same time, we have made banks aware of the supervisory consequences they will face if they fail to meet their climate and environmental risk management responsibilities. Deadlines will be closely monitored and, if necessary, enforcement action will be taken. The case for maintaining prudence While the prevailing macroeconomic tides and the inescapable currents of the climate and environment crises may have different causes, they nevertheless have something important in common. Even if we broadly understand their main characteristics and transmission channels from a qualitative perspective, the models that are being used to inform decision-making may be subject to pitfalls when quantitatively identifying and assessing the associated risks of the current environment. This is especially true when assessing the configuration of tides and currents in conjunction, in other words, when assessing how the macroeconomic environment and the climate and environmental crises interact. 3/5  BIS - Central bankers' speeches  Importantly, this applies both to the projection models that official institutions use to inform policymaking – as the ECB does in its monetary policy – and to the internal models that banks use to assess risk exposures. And while we can certainly draw lessons from historical episodes of low growth, high inflation, increasing interest rates and structural transformation, very few policymakers, supervisors or bank executives have hands-on experience of navigating this set of circumstances.
Let me now conclude by wishing all of you a fruitful and enriching conference ahead and a productive process tapping the international capital markets down the road. Thank you. 2  BIS Review 35/2007