, enforcement will come into view as a viable option. as i said, more and more financial institutions have indicated they want to go beyond managing climate - related risk. they want to actively contribute to the green transition. and that brings me to the topic of impact investing. the world bank defines impact investing as an approach that aims to contribute to achieving measurable positive social and environmental impacts. an approach that looks to the future instead of to the past. impact investing and lending creates a significant opportunity to mobilise capital into investments that target measurable positive social, economic or environmental impact alongside financial returns. so what exactly is the difference between impact investing and traditional investing? traditional investing aims for financial value, seeking an outcome on the risk - return curve known as the efficient frontier. esg risks could be taken into account as a first step, meaning that companies assess the potential financial consequences of physical or transition risk events when looking at the risk - return curve. this is what dnb expects from the financial institutions we supervise, and this is generally known as taking'single materiality'into account. to truly move towards impact investing, this two - dimensional framework changes to a three - dimensional one, as ecological and societal impacts are included in an investment decision. the sum of financial, ecological and societal value forms the target variable for optimisation. or, in a slightly'lighter'form, some minimum requirements for the ecological and societal impacts are formulated when optimising for the financial value. determining an impact value is not always an easy process, but increasingly quantitative methods are being proposed, for instance by dirk schoenmaker and willem schramade in a corporate finance book they published last year. in essence, they propose to find a monetary value and a quantity for the impact a financing decision has ( or the harm it does ). think of the cost of a tonne of co2 emitted, or the shadow price of a life year saved by a certain new medical technology. the resulting annual value streams can be discounted with a similar discounted cash flow model that is used for financial flows, although the discount rate may be different. the three - dimensional approach makes it possible to arrive at an integrated value, where financial value and impact value are taken together. but let me stop here with the technical elaboration and recommend that you read willem and dirk's book if you want to know more. 3 / 5 bis - central bankers'speeches putting this into practice is complicated.

the only g201 country that does not have an explicit deposit insurance scheme. in fact, about 125 countries have an explicit deposit insurance scheme, of which the federal deposit insurance corporation in the us2 is probably the best known, having been established in the 1930s just after the great depression. the organisation, funding, and operations of deposit insurance schemes varies greatly between countries ; while there are a number of generic characteristics, each jurisdiction 1 group of twenty 2 united states page 3 of 6 ultimately decides on the type and structure of the deposit insurance scheme that best suits its own financial system. however, a common denominator of all deposit insurance schemes is that they play an important role in the resolution of failed banks and the prevention of financial crises emanating from institutional failures. they also facilitate the process through which poorly managed and weak banks can leave the system in an orderly way, without causing extreme hardship, thereby making way for efficiently managed firms that can better serve the needs of the economy and of the population. the purpose of today ’ s workshop is to discuss the proposals outlined in the discussion paper that was published on 30 may 2017, which contains the joint views of the sarb and national treasury on the design features of a possible deposit insurance scheme for south africa. the paper deals in detail with all the aspects of the envisaged deposit insurance scheme ; these will also be covered in subsequent presentations today, which i do not want to front - run or repeat. let me just highlight, briefly, the key features of the envisaged scheme. firstly, the deposit insurance scheme would be housed in a separate legal entity established as a subsidiary of the sarb. this organisational structure would ensure adequate independence for the deposit insurance scheme to pursue its objectives, but with the backing of the sarb for good governance and operational support. secondly, all deposits ( except those by other financial institutions and government, listed in the paper ) would be covered, irrespective of the type or term of the deposits. deposits at all banks, small and medium and large, would be covered to the same limit of r100 000. based on a survey of the deposits at all banks, we estimate that r100 000 would be sufficient to fully cover the deposits of about 98 % of the retail depositors in south africa. among the other benefits that have been mentioned, we expect that this level of coverage would help the small banks to expand their funding base and, over time, contribute to the diversification of the