The Need for Clarification  BIS Review 77/1999  2  Further clarification is particularly necessary at this time, notwithstanding the point that the general principles outlined in my 1994 statement still apply. The banking environment has changed quite dramatically in the past five years. Last year, after many years of growth, Hong Kong, in common with much of the rest of the region, entered a period of sharp recession, with all the stresses and uncertainties that this has brought to the banking sector. The face of banking across the world has also developed rapidly in the last five years. There are strong justifications for the HKMA not only to restate the principles under which we are ready to provide liquidity support to institutions experiencing difficulties, but also to further clarify the objectives, the mechanics, and the limits of this support. As I have said, it has so far not been necessary for the HKMA to exercise its role as lender of last resort, though we have, on one or two occasions, said that we stand ready to do so. Given the volatility that has been generated by the Asian financial crisis and the serious problems that have been faced by banks elsewhere in the region, this is in itself a remarkable testament to the resilience and prudence of our banking sector. It also underlines the effectiveness of our regulatory and supervisory system, which, as any good system should, takes a preventive rather than a curative approach.
Launched in 2017, this network, which I am honoured to have chaired from the beginning, brings together central banks and financial supervisors to track supervisory developments and develop climate scenarios for central banks and supervisors. The network also explores paths to scale up green finance and monitor its market dynamics, thereby bridging data gaps and coordinating research in the fields of climaterelated and environmental risks. I am happy to mention that the NGFS has just welcomed its ninetieth member. The Basel Committee’s Task Force on Climate-related Financial Risks will continue working on the further integration of climate-related financial risks into the Basel framework and expectations. To help address the remaining challenges in terms of measuring climate-related financial risks, the ECB is working closely with the European Banking Authority (EBA) on the management and supervision of ESG risks. We have also provided our input to the European Commission’s EU taxonomy for sustainable activities and its non-financial reporting directive 4/5  BIS central bankers' speeches  (NFRD), which requires large European companies to disclose information on their policies in areas such as environmental protection and social responsibility. In particular, the ECB supports the ongoing work by the Basel Committee and the Financial Stability Board (FSB) on effective and consistent regulatory and supervisory approaches for dealing with climate risks. Conclusion Let me conclude. When dealing with the risks arising from climate change, we must be forward-looking, comprehensive and strategic. But we must also be swift.