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 ecb.macroprudential.bulletin@ecb.europa.eu. You can also send us an email if you want to be notified about future issues of the Macroprudential Bulletin.
Articles
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.
MoreA 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.
MoreIn 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.
MoreClimate 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.
MoreTowards 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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