ECB’s Elderson: ‘We Need to Make Sure That Banks Manage All Their Risks’
25 July 2024
By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Executive Board member Frank Elderson on Thursday said that the ECB’s mandate was to ensure that banks managed climate-related risks properly.
In an interview with French daily Le Monde, Elderson said, ‘[W]e need to make sure that banks manage all their risks, whether cyber, geopolitical or climate-related. Banks may therefore keep on financing companies that emit high levels of greenhouse gases, but if they do so, they need to manage the related risks.’
Without prejudice to the primary mandate of price stability, the ECB had been acting to support the green transition in Europe, he said.
‘Within our mandate, we have already done quite a lot of things: we have tilted our corporate bond purchases towards green companies and we are in the process of decarbonising several of our portfolios’, he said.