smes. financial institutions can provide a trickle - down effect, thanks to comprehensive co2 disclosures or divestment strategies. but the real economy must embrace the transition on its own. once again, appropriate public policies, like a credible carbon price, will set the proper incentives. d. further developing the climate agenda in an inclusive manner climate change will trigger strong distributive effects : agriculture in sweden might benefit from an increase in global mean surface temperature while 145 million people in china are threatened by sea rise in a + 4°c scenario. there will be winners and losers internationally but also within countries. this calls for a deeper international cooperation which will promote a globally fair transition to a low - carbon economy. and each and every one of us – civil society ; states and regional regulators ; academics, ngo ’ s and think - tanks ; corporates and financial institutions ; central banks, supervisors and standard setters – has a part to play : it is a shared challenge that no one can tackle alone. we should also focus our efforts and attention on emerging countries and developing economies. they are usually hit harder by climate risks and on top of that also face environmental risks at large, ( such as air pollution, water pollution and scarcity of fresh water, land contamination, harming biodiversity and deforestation ). in 2017 alone, almost 5 million people worldwide died due to air pollution. even if environmental degradation and associated ( financial ) risks are often more local in their reach, there are nevertheless compelling reasons for the ngfs to look at environmental risks relevant to the financial system and differentiate more in the recommendations provided between the types of financial systems. conclusion : the success of the paris agreement will depend on our ability to move forward in an inclusive manner. the world is in the hands of all of us. but certainly some have a greater influence on its fate than others. central banks and supervisors, within the ngfs and alongside men and women of good will, are playing their part in mitigating the disruption caused by climate change. if we want our children to have peace, i am calling on all of you to act too.

a crisis, known as ‘ funding in resolution ’. it is aimed at ensuring that the big banks have sufficient liquidity during preparations for and in the phase immediately after resolution. for this purpose, finma is drawing up resolution funding plans in line with international standards. in cooperation with the snb and the two banks concerned, it is currently assessing the big banks ’ liquidity needs under possible crisis scenarios. finally, both big banks are in the process of finalising their swiss emergency plans, in which they have to demonstrate that they would be able to maintain their systemically important functions without interruption in a crisis. credit suisse and ubs have taken important measures in this context over recent years. for instance, they have both established swiss subsidiaries to house their systemically important functions. according to finma, further efforts by the big banks are required to ensure their plans are finalised by the statutory deadline of end - 2019. 1 domestically focused banks i would now like to turn to the domestically focused banks. the mortgage and real estate markets remain the biggest source of risk for these banks. imbalances persisted on these markets in 2018. both mortgage lending volume and prices for single - family houses and privately owned apartments continued to rise at a moderate rate in 2018. in the residential investment property segment, transaction prices fell slightly in 2018. nevertheless, the risk of a price correction in this segment remains particularly high. on the one hand, this is due to strong price increases in previous years. on the other, the further rise in the number of vacant dwellings suggests that the brisk construction activity in rental apartments may have led to an oversupply. the risk appetite of domestically focused banks in this environment remained high. mortgage growth at these banks continued to be robust at around 4. 2 % last year. banks ’ current lending policy in the residential investment property segment should be viewed as particularly risky. first, a growing share of new mortgage loans in this segment was used in 2018 to finance properties in regions with high vacancy rates. second, the affordability risks of new mortgages financing residential investment property are high and have continued to rise. since many of these loans also carry considerable loan - to - value ( ltv ) risk, they are cf. finma, annual report 2018, 4 april 2019. page 2 / 3 berne, 13 june 2019 fritz zurbrugg news conference particularly vulnerable in a scenario involving a correction in real estate prices and a sharp increase in interest rates. given the risks i