. for example, when valuing the assets that banks lodge as collateral, or when purchasing securities. this will require, amongst other things, better data, which we should also demand. if, by doing so, the eurosystem brings about greater transparency in the markets, it will also help pave the way for a “ greener ” financial system in general. i have no doubts that the financial system will play a vital role in the transition to a sustainable economy. after all, said transition will require massive additional investment. this will require the mobilisation of correspondingly large sums of money. but it is governments and parliaments which must take the crucial steps towards climate neutrality. they make decisions on specific policy measures – especially the pricing of greenhouse gas emissions – as well as on international coordination and on striking a social balance. climate change also shines a spotlight on the legitimate interests and needs of future generations. we can ’ t leave young people to bear the burden all by themselves. generational fairness also means leaving our children a modern and effective general government. a government such as this needs sufficient fiscal leeway to successfully withstand future crises, too. this is why public finances need to be placed on a solid footing while times are good. this footing forms the basis for stabilisation when times are tough. in addition, sound public finances are an important safeguard for our single monetary policy. that ’ s one of the bundesbank ’ s core beliefs. and so it is part of the job description of every bundesbank president to sometimes offer critical advice as well. it ’ s essential that monetary policymakers do not come under pressure to guarantee government solvency. in the debate surrounding the reform of the european fiscal rules, one thing is therefore particularly vital : high debt ratios must be scaled back reliably. 4. 2 banks and financial stability the coronavirus pandemic has shown just how important it is that general government has the financial capacity to act – a swift, extensive and responsible fiscal policy response meant that larger - scale economic damage could be avoided. this also protected germany ’ s financial sector from losses. however, we shouldn ’ t simply assume that this will continue to be the case. credit risk could flare up again in the future. as the bundesbank noted in its financial stability review, cyclical vulnerabilities in the german financial system have continued to mount. for instance, the risks stemming from the overvaluation of assets and credit collateral have risen

, eliminating the need for the individual to think about what is right or wrong. and indeed we can do this up to a certain point – salary regulation and the task force which i mentioned earlier are two examples. these new initiatives are increasingly making inroads into the realm of values and morals, serving at least to penalise unethical behaviour. it is tempting to think that, if new rules make people conform to certain ethical patterns of behaviour, supervision can take care of values. simple! but it doesn ’ t work like that – and here ’ s why. supervision cannot anchor values in the business world. granted, it does so sometimes “ by the by ”, as a side effect of penalising conduct which is both illegal and unethical, as with the two examples i ’ ve just mentioned. but we do not prescribe values that market participants must abide by. rather, our efforts to prevent certain unethical strands of behaviour are based on economic factors. we have neither the ability nor the desire to vet whether somebody alters their behaviour because they either accept and prize values such as honesty and responsibility or fear negative repercussions. your instinct may be to think that whether bankers behave in an ethical manner because they believe that it is the right thing to do or just because they feel forced to do so is neither here nor there. the end result is, after all, the same. but that is far too simplistic ; the end result is not the same. on the one hand, we have bankers who believe in values such as honesty and solidarity. they will always behave in an ethical way, even if given the chance to behave unethically without being caught out. 4 / 6 bis central bankers'speeches on the other hand, the sole reason that some bankers are not behaving unethically is because they are being held back by the operational framework. they will always seek – and probably often find – a way to behave unethically. please don't get me wrong, the majority of people, and the majority of bankers, are honest and their behaviour is value - led. but we are only human, and it is simply human nature to want the best for ourselves and those close to us. any debate around values will always hit upon this snag. so, for a variety of reasons, values cannot be embedded in business by regulation alone. first, because globalisation and irrational behaviour limit what rules can achieve. and second