to understand specific regional needs. at the bundesbank, we also have a long tradition of offering training courses to our international colleagues. in fact, we will offer several seminars around the topic of climate risks also this year. they are open to all our central bank colleagues1. in late february, we will start a preparatory course on climate risks, targeting those who are still finding their way into the topic. there will be advanced courses too, for examples on climate change and monetary policy and on supervising sustainability risks later in 2025. in addition, we offer tailored bilateral seminars. so please do not hesitate to get in touch with me or my colleagues from the bundesbank. the integration of climate - related risk into financial supervision is an on - going effort which requires collaboration and knowledge sharing. 3 the role of supervision now, let us delve deeper into the role of supervision. it is a given that supervisory authorities are responsible for ensuring that financial institutions manage all material financial risks they encounter. climate change clearly constitutes such a risk. the risk can come though transition or physical impacts – or even both. additionally, nature degradation – such as deforestation and the erosion of soil - – is increasingly becoming a focal point. it is crucial for the financial sector to capture, monitor and manage climate and naturerelated risks. to give a practical example : as you know, land often serves as collateral for loans to small and medium - sized african businesses. the collateral - to - loan ratios can be quite high2. investment in land resilience, such as climate - adapted irrigation techniques, can increase its quality and, consequently, its asset value. a bank that does not manage climate risk would fail to capture these effects. it would therefore be unable to adequately price the value of the collateral. i consider it essential that the financial sector takes these aspects seriously and prepares accordingly. 2 / 3 bis - central bankers'speeches in 2020, the central banks in the euro area published a guide outlining their expectations for prudent climate risk management. and several central banks, including the ecb and the bundesbank, have conducted climate stress tests to assess climate risks in the financial sector. 4 climate scenarios to conduct climate stress testing, climate scenarios are a fundamental tool. they explore a range of plausible futures, without assigning concrete probabilities, serving as the basis for stress assumptions. in november of last year, the ngfs released an updated version of its long - term climate scenarios. the

hermann remsperger : current financial stability issues from a european viewpoint speech by professor dr hermann remsperger, member of the executive board of the deutsche bundesbank, at the representative office of the federal state of hesse at the european union, brussels, 27 june 2007. my thanks are due to ms susanne korbmacher for her kind assistance in preparing this talk. * * * ladies and gentlemen i have chosen to give this lecture the title " current financial stability issues from a european viewpoint " for the simple reason that it allows me to elaborate on a whole bundle of burning questions concerning financial stability. needless to say, these issues are highly complex in their nature. i summary in order to make matters more understandable i used last sunday to go through my speech again and completely rework it. i shall begin at the end – that is to say, by focusing on the six comments that i had originally intended to use in my final summary. 1. despite some risks in the financial markets – particularly in the credit markets – i consider the international financial system to be remarkably robust, not least on account of the very good performance and ample capitalisation of systemically important banks 2. with the arrival of new financial market instruments for credit risk transfer and thanks to the growing influence of unregulated financial investors, credit risks are not necessarily located in the kind of places where they would have traditionally been expected. this not only makes it more difficult for market participants to manage risk. the task of assessing stability risks relating to the international financial system is also made more difficult for the official agencies responsible. 3. when evaluating the stability situation in future, it will be even more important than in the past to combine a proper examination and assessment of new instruments with an analysis of the behaviour of new market participants. this would appear to be the best way to deal with the fact that the financial system is not only expanding but also becoming increasingly complex. 4. the transparency of the distribution of risks across the financial system has tended to decrease, thus presenting the official agencies with the question of how it might be possible to increase this transparency again. much of the recent discussion on hedge funds has revolved around this point. 5. the remarkable initiative by london - based hedge - fund managers to consider introducing improved, and possibly also binding, sectoral standards is an indication of the real potential that exists for agreement between official agencies and market players on the urgent need for greater transparency. 6. the fact that