and supervisors, and i have great confidence in ravi menon ’ s leadership. beyond climate change, the ngfs is acting as a great catalyst on nature - related issues. in light of its march report, the ngfs launched in april a nature - related risks taskforce co - chaired by sylvie goulard, deputy governor of the banque de france, and saskia de vries from dnb, with the objectives to incorporating nature - related risks into the ngfs ’ s long standing workstreams within the next two years. as much as possible, let us have interim deliverables earlier. conceptual framing and research : as a problem well - stated is a problem half - solved. bridging methodological shortcomings and data gaps is a crucial pre - requisite for action, before jumping to any conclusions on the prudential or monetary front – these must come in due time. our priority as page 11 sur 13 central banks and supervisors is thus to build the capacity to further analyse and study empirical evidence of the financial implications of biodiversity and naturerelated risks. at the banque de france, we are fully committed to this effort, thanks to a dedicated team of experts within the climate change centre ( ccc ) who contribute both to ngfs and bdf research advances. we will strive to provide state of the art metrics, financial assessment, and, hopefully in a near future, scenarios analysis. the work plan of the ngfs taskforce includes the development of a unique conceptual framework adapted to our activities, which will be key to build a common understanding and address the knowledge, capacity and methodological gaps that we face. contribute through individual or national pilot initiatives be it on reporting, monitoring, or responsible investment. and let me underline here that france is leading the way, especially on biodiversity issues. article 29 of france ’ s energy and climate law extends climate - related risks reporting requirements for financial investors to biodiversity - related risks. the french prudential supervision and resolution authority ( acpr – part of the banque de france ) is assessing the compliance of our supervised entities with article 29 of the insurance companies we supervise. we received the first reporting last september, and – not so surprisingly – early control checks indicate that reporting entities are facing challenges in the access to relevant biodiversityrelated data and mostly relied on third party providers. as required by law, entities that are not able to disclose on all required information will have to disclose on their plans for continuous

corporate bonds discovered that these products were very different. for example, the so - called bespoke collateralised debt obligations ( cdos ) have became impossible to value in an acceptably precise manner and, at the current juncture, efforts are made to either mark - to - market the products using some comparable tradable asset prices or the latest available price quotes. another problem – closely related to the valuation issue – is the role the rating agencies have played in the development of structure finance products and the propagation of the turmoil as well as the excessive reliance of investors on ratings in their credit risk assessments. questions have also been raised about the potential conflicts of interest in the activities of rating agencies. finally, with regard to funding liquidity risk, an important ingredient in the turmoil which contributed to the propagation of tensions from the credit markets to the money market, was the maturity mismatch on the balance sheets of abcp conduits. the risks associated with these funding mismatches were further aggravated when market liquidity evaporated from the markets for complex structured credit products. in addition, it became clear that banks often did not have adequate contingency plans in place to deal with unexpected funding liquidity needs arising from the contingent liquidity facilities they had provided to conduits or to deal with the risk that they would face difficulty in syndicating the bridge loans they had extended to finance leveraged buyouts. looking forward, at the current juncture the outlook for the subsequent evolution of the subprime originated turmoil is highly uncertain. in order to obtain some indication on the possible propagation of market tensions, i would like to refer to box 5 in the review which focuses on the interactions between credit and market de - leveraging cycles. it concludes that in an environment in which bank loans are widely used as collateral for asset - backed securities, a sudden increase in borrower default rates could have implications on the financial performance of banks not only via credit risks, but also through market and income risks. from this perspective, an important issue for the euro area and global financial stability outlook is the way in which the ongoing re - pricing of credit risk feeds into the evolution of the credit cycle. a crucial channel that will determine the impact of money market tensions and the re - pricing of credit risk on the credit cycle and the real economy is the extent to which they will affect banks ’ lending behaviour and, consequently, the financing conditions of households and the corporate sector. indications of a considerable tightening of