new commission consultative climat et finance durable [ climate and sustainable finance committee ] ) has been monitoring the public commitments of financial institutions to exit carbon - intensive industries. the acpr - amf preliminary joint report published this morning stresses the progress made by the french financial sector, but also the need for harmonisation. 1. 2. the ngfs is keeping its momentum on the international front, it is a source of great pride to see the ngfs, which we initiated almost three years ago in paris – along with seven other founding members – and for which we provide the secretariat, blossoming with more than 70 members, covering the five continents. the ngfs is striving with more than six deliverables produced to date, following - up on the six recommendations we issued in our first comprehensive report ( april 2019 ). let me highlight three of its latest publications in particular, which bring some building blocks to a climate - risk assessment framework : 1 / 3 bis central bankers'speeches - the “ guide for supervisors ”, published last may, sets out recommendations for banking and insurance supervisors ( for example : identifying exposures of supervised entities that are vulnerable to climate - related and environmental risks and assessing the related potential losses ) ; - the “ guide on climate scenario analysis for central banks and supervisors ”, published last june, which aims to provide a common starting point for analysing climate risks to the economy and the financial system. indeed, the acpr pilot exercise builds on these ngfs climate scenarios ; - the ngfs has also started to tackle the link between climate change and monetary policy by publishing “ initial takeaways ” in june 2020. based on a comprehensive review of existing literature and expert analyses, it provides early answers to the following questions : ( i ) how does climate change affect key macroeconomic variables? and ( ii ) what are the effects on the monetary transmission channels and central banks ’ assessment of their policy space? 1. 3. the ecb ’ s strategy review will be the occasion to foster the integration of climaterelated risks into the monetary policy framework these considerations among central bankers also translate into actions. the ecb, under christine lagarde ’ s presidency, decided to integrate in its strategy review how monetary policy can contribute in the fight against climate change. don ’ t listen to those who say that this would be mission creeping, or that it would require a change of our mandate : i refuse this “ call for inaction ”, and climate change will

expected and is reasonable. we cannot ask banks to generate a double - digit return on equity when interest rates and the risk - free rate are so low and banks are indeed more resilient than they were. moreover, this improvement does not only concern the banks : it can also be seen in the non - banking sector and the financial markets, with particular progress made with regard to over - the - counter derivatives and the shadow banking system. regarding the economic consequences of the reforms, it is important first to remember the cost of the financial crisis : according to imf data, the total loss of global output from 2007 to 2014 amounts to 25 %. compared to this considerable loss, the potential cost of financial regulation is very small. and above all, no one can seriously claim that in france or more generally in the majority of advanced economies the supply of credit has been excessively constrained by banking regulations. on the contrary, lending to the economy remains robust, with housing loans in france up 5. 6 % year - on - year in april 2017 and loans to non - financial corporations up 5. 4 %. in the coming months, this strong overall growth may actually warrant general vigilance and closer scrutiny by the high council for financial stability, in which i participate. 1 / 3 bis central bankers'speeches * * * ii. nevertheless, we are still faced with a challenge for the future, which brings me to my second point : even if the achievement is now on solid foundations, there is clearly no room today for complacency or respite. although the risks of a future crisis have diminished, no one should believe that they have disappeared entirely. so what measures are required? for banks, the priority is to stabilise the regulatory framework and therefore we must finalise basel iii. here, it is useful to remember that, essentially – let ’ s say approximately 80 % – basel iii was already completed in 2011. in addition, there is now a broad consensus on risk measurement approaches. the main point that is still undecided and which continues to occupy the committee members is the setting of the so - called “ output floor ” for banks that apply internal models. let ’ s be clear : i read and hear the banking industry, and french banks in particular, giving its advice for negotiations on this point. a little restraint would not go amiss, and it is not our intention to defend corporate interests. if an output floor of 75 % is not acceptable, it