Since 2020, DFIs also administered more than RM1 billion of funds for the government to the underserved groups of businesses and facilitated about RM36 billion of Repayment Assistance restructurings to nearly 270 thousand individuals and businesses. All this is commendable. But while supporting the economic recovery will continue to be a top priority in the near term, as institutions designed with developmental mandates, DFIs ought to embrace sustainability as their existential purpose. One could argue that the developmental 1/5  BIS central bankers' speeches  mandates of DFIs, which preceded the foundation and adoption of the sustainability goals had already reflected them. Ending poverty, zero hunger, reducing inequalities, gender equality, industry and economic growth, climate and environment and others are by and large, goals and sectors that DFIs are already involved in. They are not new to DFIs. However, by embracing sustainability, this would heighten the purpose and sharpen that focus for DFIs to enhance the delivery of these mandates and play a key role within the system to support our economy towards a better future. This brings me to my first key point. DFIs can help re-shape the economy towards prioritising the adoption of sustainable agenda as part of the post-pandemic rebuilding efforts DFIs, can help re-shape the economy through sustainable finance as part of the post-pandemic rebuilding efforts. This entails using financing to nudge businesses and consumers to adopt practices that promote resilience and good governance while growing sustainably and protecting the environment. The need for this is undeniable and inevitable.
Under the CRF, the SNB can also conduct additional refinancing transactions in order to supply the banking system with further liquidity if required. As I mentioned, the SNB’s new refinancing facility operates in conjunction with the federal government’s guarantees for corporate loans. So how does this approach work? Page 1/2  Berne, 25 March 2020 Thomas Jordan  News conference  In a stressed situation like the one we are facing, the risk of companies defaulting on loans increases. At the same time, the banks are seeking to hold higher levels of liquidity. These two factors can lead to a credit shortage, even though demand for credit is rising sharply. The Confederation’s loan guarantees and the SNB’s refinancing facility can unblock the system and get credit flowing again. As the banks have all the necessary client relationships, the loans will find their way to the companies that need them. The approach is simple, effective and makes use of existing structures. Bank lending will play a crucial role in Switzerland’s economic development, especially in the coming weeks and months. The new CRF is intended to support banks in these efforts, as is the raising of the exemption threshold for the negative interest rate announced by the SNB last week. Furthermore, after consulting with FINMA, the SNB has submitted a proposal to the Federal Council requesting that the countercyclical capital buffer for mortgage loans on residential real estate be deactivated. This integrated package of measures gives banks maximum latitude for lending.