Post by European Central Bank

Banks are on a sound footing after the financial crisis.   Now – in these uncertain times – we must urgently finish the work that is still incomplete: the banking union, the capital markets union and the Single Market, says Supervisory Board Vice-Chair Frank Elderson.   In an interview with NRC, Mr Elderson also says that:   𝐓𝐡𝐞 𝐜𝐥𝐢𝐦𝐚𝐭𝐞 𝐚𝐧𝐝 𝐧𝐚𝐭𝐮𝐫𝐞 𝐜𝐫𝐢𝐬𝐞𝐬 𝐚𝐟𝐟𝐞𝐜𝐭 𝐨𝐮𝐫 𝐩𝐫𝐢𝐜𝐞 𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲, 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐬𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐢𝐨𝐧 𝐦𝐚𝐧𝐝𝐚𝐭𝐞𝐬. We must therefore consider climate and nature-related risks in both our central banking and our supervisory work. 𝐁𝐚𝐧𝐤𝐬 𝐧𝐞𝐞𝐝 𝐚 𝐥𝐞𝐯𝐞𝐥 𝐩𝐥𝐚𝐲𝐢𝐧𝐠 𝐟𝐢𝐞𝐥𝐝. The international Basel agreements should therefore be implemented as quickly and fully as possible, as a regulatory race to the bottom will only lead to everyone losing out.   𝐑𝐚𝐩𝐢𝐝 𝐠𝐫𝐨𝐰𝐭𝐡 𝐢𝐧 𝐧𝐨𝐧-𝐛𝐚𝐧𝐤 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐢𝐧𝐬𝐭𝐢𝐭𝐮𝐭𝐢𝐨𝐧𝐬 𝐜𝐚𝐥𝐥𝐬 𝐟𝐨𝐫 𝐯𝐢𝐠𝐢𝐥𝐚𝐧𝐜𝐞. While there are positive aspects of diversifying financing, we need to be sure that risks in the system are transparent and properly managed.   Want to learn more? The full interview is linked in the comments 👇