One of the most important is determined by what we know about the functioning of the economy and the effects of monetary policy. Not everyone agrees, however, that transparency is a good thing for attaining financial stability. Many people argue that so-called constructive ambiguity is the best way to avoid problems of moral hazard in the banking industry. I believe, however, that transparency is important in this area as well. Banks that are "too big to fail" from a systemic point of view will in any case count on support from the government. Especially when it comes to countries like Sweden, which experienced a severe banking crisis not so long ago, it is likely that support to banks that encounter financial problems will be expected if nothing else is being communicated. Another risk associated with constructive ambiguity is that it could limit the motivation of central banks to seriously consider what to do in a crisis. In other words, it could provide an excuse for not thinking the issues through. However, if you are not prepared, you could easily become the bank's prisoner in a time of crisis. Through deeper analysis of the "too big to fail" problem and open communication of crisis strategies, it should be possible if anything to mitigate the moral hazard problem. If you can show that the banks do not need to be systemically important, it should make banks even more uncertain about the possibility of receiving support than any policy of constructive ambiguity.
Running through to 2024, the plan aims to integrate climate-related risk into the ECB’s monetary policy strategy, not just in asset purchases but also in the framework governing the collateral eligible for central bank refinancing. Central banks themselves also have a role to play in steering investment flows towards the green transition, in particular by greening their own funds. The Banque de France was the first Eurosystem central bank to adopt and implement a Responsible Investment Charter, which it did in 2018 for its own funds portfolios. It aims to limit the exposure of its assets to climate-related risk while also taking account of the impact of its investments on the environment, in keeping with the double materiality principle promoted by the EU. In conclusion, there is certainly no shortage of challenges for banks. However, I hope I have shown that these challenges are also opportunities. Accordingly, we should neither overstate nor underestimate their significance. Thank you for your attention. 6/6  BIS central bankers' speeches