as of the financial system and the economy as a whole. this summer, ecb banking supervision ran a climate stress test that showed that many banks still have their work cut out for them when it comes to managing climate risks. 4 ngfs climate scenarios that stress test was based on a set of scenarios developed by the network for greening the financial system ( ngfs ). the ngfs is a network of more than 120 central banks and supervisors that aims to support sustainable transformation. the ngfs scenarios help quantify the economic impacts of different emission and policy pathways. the most recent update considered physical risks for the first time and took an improved look at regional and sectoral factors. the ngfs is continuing to upgrade the scenarios and their practical usability a€ “ also with a view to transition plans. the ngfs is working out how transition plans relate to supervisors'roles and mandates and how they could become part of the supervisory toolkit. 5 conclusion many aspects of transition plans are still up for discussion. the same is true for the role of supervisors when it comes to checking these plans. events like this are good opportunities to consider such fundamental questions. so let us discuss ways forward and find common ground internationally. the goal is clear : to define ambitions and to turn these ambitions into actions. 2 / 2 bis - central bankers'speeches

true single market for capital. however, despite these initiatives, cross - border financial activities in many areas have not increased noticeably in recent years. this means that opportunities for providing enterprises with easier access to funding are not being exploited. in the eu, corporate financing using equity and debt securities remains underdeveloped by international standards. it is difficult for small and medium - sized enterprises ( smes ), in particular, to tap into the capital market. and, for start - ups, a lack of venture capital is leading to financing problems. action is clearly needed. deepening the capital markets union is therefore a key building block in the further development of the economic and monetary union. this has been particularly true since the withdrawal of the united kingdom and, with it, london, which had been the dominant financial centre of europe until then. 3 reasons for a capital markets union deepening the capital markets union could pay off in two ways. removing the existing obstacles to investment and free capital market flows could help not only to promote stronger growth, but also make capital markets more resilient. integrating capital markets can contribute to financial stability by fostering the diversification of funding sources across national borders and by strengthening private risk - sharing through the expansion of equity financing. a look across the pond shows just how useful this would be : at present, risk - taking by the private sector provides much more of a cushion against economic shocks in the united states than it does in the european union, for example. at the same time, deepening the capital markets union would strengthen the eu's global competitiveness. it would also promote both europe's strategic autonomy and the international role of the euro. for enterprises, a harmonised, broad - based and deeper financial system could help them to finance and successfully navigate the necessary ecological and digital transformation. 4 what is the problem, and what needs to be done? if the potential benefits are so obvious, then why is progress so sluggish? events such as brexit, the covid - 19 pandemic and geopolitical tensions have delayed efforts in this area and pushed the issue into the background. another challenge is the fact that, in the eu, responsibility for fiscal and economic policy remains largely at the national level. ultimately, it is a political question : what is the right balance between centralisation and subsidiarity? there is certainly no easy answer to this question, and the solution will have to be constantly rebalanced in the political