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Macroprudential Bulletin

Our Macroprudential Bulletin provides insight into the work we are currently doing in the field of macroprudential policy. Our goal is to raise awareness of macroprudential policy issues in the euro area by making our ongoing work and thinking in this field more transparent, and to encourage broader discussion on these key issues.

We aren’t trying to be transparent about our work just for the sake of it. This is also an opportunity to invite you to share your views with us by sending your feedback to You can also send us an email if you want to be notified about future issues of the Macroprudential Bulletin.


Issue 15

Climate-related risks and opportunities

The long-term nature of climate risks and uncertainty about their impact over time pose significant challenges for the global economy. This issue of the Macroprudential Bulletin explores the tools and policy reforms needed to manage climate risks and finance the transition towards a greener economy.


Climate risks in the banking regulatory framework

It’s difficult to accurately capture the impact of climate risk on bank balance sheets. The unique features and systemic dimensions of climate risks may mean that, to ensure financial stability, macroprudential policies may be needed to complement banks’ own risk management and direct supervision.


A status quo assessment of the EU taxonomy

The EU taxonomy for sustainable economic activities is an important tool to encourage investment in environmentally sustainable activities. At the moment, though, only a very small share of EU securities is used to finance such activities, and there is huge potential for growth in green finance.


In focus

Stress testing climate-related risk

Our macroprudential stress test approach takes into account the fact that climate-related risks add to other deep-seated cyclical and structural risks in the economy. By comprehensively quantifying the impact of climate-oriented scenarios, this can help to achieve timely and appropriate policy responses.


Climate risk in the banking framework: a theoretical model

Our analysis finds that banks take excessive risks when they don’t appropriately identify transition risks in their capital requirement calculations, which increases the volatility of lending and GDP. This means that there is a good reason to introduce climate prudential policies to address transition risks.


Towards a green capital markets union

Green capital markets are growing rapidly and are more resilient and integrated than traditional markets. Enhancing market structures and standards will help decrease greenwashing and drive the growth of green finance, helping bring about carbon neutrality.


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