MAS is also working on a roadmap to better integrate environmental risks across all our business functions. This will include measuring, reducing and disclosing our own carbon footprint. Next year, as we mark MAS’ 50th anniversary, we will share in greater detail our strategies towards a more sustainable MAS. DEVELOPING GREEN FINANCIAL SOLUTIONS AND MARKETS  The second key thrust of our Action Plan is to develop green finance solutions and markets. We are: promoting sustainability bonds and loans; developing insurance solutions for climate risks; attracting green funds and asset managers with a sustainability focus; anchoring providers of sustainability rating and verification services; and collaborating with international partners to develop a common green taxonomy. Sustainability bonds and loans provide corporates the incentive to embed sustainability considerations in their financing decisions. MAS’ Sustainable Bond Grant Scheme defrays the cost of external reviews to demonstrate the alignment of sustainability bonds with international standards. More than $ billion in green, social and sustainability bonds have been issued in Singapore since the introduction of the Scheme in 2017. They have supported a range of impactful outcomes: developing renewable energy projects; https://www.mas.gov.sg/news/speeches/2020/harnessing-the-power-of-finance-for-a-sustainable-future  7/13  14/10/2020  “Harnessing the Power of Finance for a Sustainable Future”- Keynote Speech by Mr Ravi Menon, Managing Director, MAS, at the Finan…  improving the energy eﬀiciency of buildings; financing social enterprises aimed at helping lower income women; and so on. MAS will launch by the end of the year a similar grant to support sustainability-linked loans.

French banks do not have so called “toxic assets” in their balance sheets but sovereign exposures on countries which are part of a monetary union. Some of these exposures need to be provisioned. These provisions will be increased for Greece. And all these risks are fully disclosed according to the European Banking Authority (EBA) templates. Despite the deleveraging taking place, their profitability remain strong and will enable them to face, in due time, the increase of capital requested by the new regulatory environment. I would therefore emphasize that these so-called “vulnerabilities” are mainly the consequence of the internationalization of banking activities. And there is a certain paradox in a situation where these globalized banks, with diversified activities and balanced business models, are perceived riskier than more specialized institutions. **** To conclude: in these turbulent times, Europe has a special responsibility. Currently, at the epicenter of the crisis we are fully aware of the necessity to take and implement vigorous decisions. However the interaction between markets and governments has become more complex. We live in democracies and have to accept that political decisions follow their own process and obey their own constraints. In all our countries, rising public debt and the unstable state of public finances is creating enormous anxiety, which, in turn, makes it more difficult to reach the necessary decisions. There are, however, some reasons for optimism. On the supply side, our economies remain robust and dynamic. Corporate balance sheets are strong.