At the Banque de France, we published a study called “A “Silent Spring” for the Financial System?”,xix which explored the dependencies and impacts of the French financial system on biodiversity.xx Importantly, the study was interdisciplinary and involved several researchers and experts from various institutions.xxi As I will discuss later, I believe that this interdisciplinary approach is essential to address the challenges of the Anthropocene. These different studies enable us to understand that nature-related financial risks can be split between physical and transition risks, much like climate-related financial risks. Physical risks stem from the dependency of economic activities on ecosystem services and their vulnerability in the case of disruption. For instance, the loss of pollination could affect agricultural output and lead to food shortages or higher consumer prices, while new pandemics could disrupt entire value chains. Transition risks result from the negative impacts of some economic activities on biodiversity, which makes them vulnerable to transition policies. For instance, it is hoped that the COP15 that will take place in December in Montreal will lead to an international agreement to protect 30% of land and sea areas by 2030. Regional and national policies are also expected: the EU Green Deal contains several goals related to biodiversity, such as the need to increase organic farming practices from 9% to 25% cultivated areas. All these policies could have profound implications for different sectors (agriculture, industry, real estate, and so on), and it is important to assess the potential impacts for financial institutions and the financial system as a whole.

Resilience: three lessons from the financial crisis1 Speech given by Dave Ramsden, Deputy Governor for Markets & Banking  Inverness Chamber of Commerce 30 May 2019  1  With thanks to Tom Smith for his assistance in preparing these remarks and to staff across Bank, including Alex Baiden from the Bank’s Advanced Analytics division and Nick Bate and Liam Crowley-Reidy from the Bank’s Monetary Analysis directorate, for their many contributions, as well as my colleagues on the MPC for their helpful comments and suggestions. 1  All speeches are available online at www.bankofengland.co.uk/news/speeches  1 Introduction It’s great to be here in Inverness, and to be speaking here this morning. My talk today is going to focus on resilience. The first definition of resilience thrown up by Google is “the capacity to recover quickly from difficulties; toughness”. It seems apt that I should be focusing on this here in Inverness as Scotland itself is a famously resilient nation. Robert the Bruce was taught resilience by a spider. Scotland’s mountains epitomise geological resilience and tests the physical resilience of walkers and climbers. The Scottish economy has been through some tough times, but proved relatively resilient during the financial crisis, with Scottish onshore GDP falling much less than overall UK GDP. Even the existence of the Loch Ness monster has proved resilient to continued scientific investigation. And resilience is a word that you hear a lot these days (Chart 1). Psychological resilience is lauded as a virtue as life becomes more complex and challenging.