They can adopt a multi-year approach when engaging financial institutions on their transition efforts. This includes acknowledging that there may be short-term increases in their financed emissions from supporting the transition of higher emissions clients towards climate positive outcomes. The Monetary Authority of Singapore intends to do all of the above. 2/5  BIS - Central bankers' speeches  The NGFS is providing thought leadership on the role of financial regulators with respect to financial institutions' transition plans and transition planning process. We are exploring the extent to which financial institutions' transition plans should be considered within the supervisory toolkit and overall prudential framework. While most financial institutions' transition plans have a climate focus, they have different nuances in objectives, ranging from climate risk mitigation to reducing financed emissions to supporting the real economy's transition to net-zero. But there are some common elements to all transition plans which are relevant to supervisors for assessing safety and soundness. The NGFS has completed a stock-take of supervisory frameworks with respect to financial institutions' transition plans. We are sharing the results of the stock-take with the Basel Committee on Banking Supervision and the Financial Stability Board, to facilitate greater coordination in the development of transition planning standards. We will publish a report on key findings and next steps that will provide a basis for further work on the role of transition plans in greening the financial system.

ECB policy interest rates were already then at their lower bound, at practically zero, with negative rates on the deposit facility. At the same time, liquidity provision by the ECB through its regular open market operations and its longer-term operations followed an on-demand principle, granting all the liquidity requested by banks; indeed, for several years a policy has been pursued under which, at the interest-rate marked for monetary policy operations, the ECB has not rationed the volume of liquidity provided to banks. After a few months’ experience, we can state that asset purchases have clearly contributed to re-anchoring inflation expectations, in line with the medium-term objective and, most importantly, they have checked and reversed the rise in real interest rates. Their effects have also been manifest in portfolio re-balancing, encouraging investors to shift holdings from riskBIS central bankers’ speeches  1  free or very low-risk securities to riskier ones, thereby reducing the cost of financing for consumers and investors. The second aspect I would like to mention is the role of economic policies in countries that have had to set about correcting the deep-seated imbalances built up in the expansion that ended with the onset of the crisis in 2007–2008. I would refer to policies aimed at improving competitiveness in goods markets and at reducing labour market inefficiencies, which are most significant in countries with high unemployment, in particular in those cases in which high indebtness is a constraint on the possibility of implementing demand-boosting policies.