The European Central Bank (ECB) has warned about the risk of climate change to financial stability and monetary policy.

“(It) is quite clear that climate change will have — and has — an impact on price stability, if you look at climate events, if you look at exposed areas in particular, price is based on that,” said President Christine Lagarde of the European Central Bank remotely at the State of the Union Conference CNBC reports.

The ECB undergoes a policy review of all aspects of its monetary policy and also considers the risk of climate change in a report.

“The space available for monetary policy will also be partly, not only but partly, determined by climate change,” Lagarde said.

Discussion on Climate

Lagarde joins an increasing number of leaders who are focusing on the potential financial risks associated with climate change. The managing director of the International Monetary Fund, Kristalina Georgieva, for example, recently warned of the negative consequences of the rising frequency of natural disasters.

“When a country has a natural climate disaster — and those disasters are getting frequent and severe — property is affected, agricultural production capacity and industry are affected, including financial institutions are hit,” Georgieva said to the CNBC, adding that natural climate disasters could cause mortgage owners problems, and reduce bank income on a climate regular basis.

Company assessment may also be affected by our transition to a low carbon economy.

“When we switch from high to low climate-carbon intensity industries in this high-intensity area are less valuable, changes in asset valuation can be quite difficult for financial institutions if this shift is abrupt,” Georgieva added.

Cash on Loan-Sweetener

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign Up for Our Newsletters

Get Notified For Latest Updates And Exclusive Offers As Well

You May Also Like

Adani Group Will Buy 29.2% Of NDTV And Will Launch An Open Offer.

According To A Statement Made By AMG Media Network, Which Is Owned By Adani Enterprises, The Open Offer Will Have The Purpose Of Acquiring An Additional 26% Stake In NDTV.

Adani Group’s House Of Debt Is Flagged By A Credit Research Firm

Adani Group’s Credit Concerns Include Overleveraged Aggressive Expansion, Forays Into New/Unrelated Businesses, And Competition With Reliance Industries.

Enso Group’s Founder And Chairman, Vinay Maloo, Underscores Innovation As The Key To Economic Growth.

He Emphasizes That Entrepreneurs, Especially In The Gen-Z, Need To Understand The Importance Of Adapting To New Tech Trends And Innovating Their Way To The Top.

Adani Enterprises FPO Proceeds “As Per Schedule” Despite Reports Of Extension And Price Reduction.

Despite Reports From Sources That The Closing Date For Adani’s $2.5 Billion Follow-On Public Offer May Be Extended Or The Issue Price Lowered, The Company Maintains That The FPO Will Proceed As Planned.