The aim is to ensure that the analytical basis is consistent with the formulation of monetary policy. The objectives of the countercyclical capital buffer and the key policy rate are different. The objective of the buffer is to strengthen banks’ resilience to losses in an economic downturn, while the objective of monetary policy is low and stable inflation over time. The inflation target is weighed against the aim of smoothing fluctuations in output and employment. The new instrument will be taken into account in monetary policy. Both the key policy rate and the buffer work through banks’ responses. The buffer will be set on the basis of an assessment of the risk that financial imbalances may trigger or amplify an economic downturn. Capital adequacy requirements, and their effect on bank lending rates, will be one of many factors underlying the monetary policy analysis and interest rate setting. The countercyclical capital buffer will strengthen the resilience of the banking sector during an upturn. It may also, to some extent, counteract the build-up of financial imbalances. But the effect on bank behaviour is uncertain. Thus, Norges Bank cannot disregard financial imbalances when setting the key policy rate. The criteria for the conduct of monetary policy remain firm also after the introduction of a countercyclical capital buffer. When assessing the various considerations, monetary policy must pursue its primary objective – low and stable inflation. We cannot overburden monetary policy. Other economic objectives must be pursued using policy tools such as financial regulation, the tax system and fiscal policy.

Project Greenprint seeks to streamline the collection, access, and use of climate and sustainability data through four digital utilities:  3/4  BIS - Central bankers' speeches  an ESG registry of certifications an ESG disclosure platform to facilitate reporting a digital marketplace to connect data users with ESG solution providers a data orchestrator to aggregate ESG data from multiple data sources  Globally, GFANZ has formed the Net Zero Data Public Utility to address issues such as data gaps, data accessibility, and data inconsistencies. It will complement existing climate data initiatives, promote the effective management of climate-related financial risks, facilitate robust sustainability reporting, and accelerate the formulation of credible transition plans. I have provided a quick overview of Singapore's efforts in three key areas of transition financing - blended finance, carbon markets, and good-quality data. This afternoon, I will share some of the interesting and impactful work being done by the NGFS in the areas of blended finance, data, and capacity building. In all our efforts, I cannot emphasise enough the importance of collaboration and collective action. We have a common mission: to reduce global greenhouse gas emissions to net zero by 2050. But time is running out. We must act now, act fast, and act together. There has never been a greater opportunity for us to find common purpose, build solidarity, and ensure the sustainability of our planet and better lives for communities everywhere. Thank you. 4/4  BIS - Central bankers' speeches