are calling for. this would help to stabilise the banking sector – and, at the same time, would support the transition. however, this will only work if enterprises are transparent about their carbon footprints and climate vulnerabilities across the board. only then will markets be in a position to appropriately price in their climate - related financial risks. the ecb ( european central bank ) recently released the results of its climate risk stress test for major european banks. this included some german landesbanken. the good news is that the significant institutions likely do not need to expect any material losses overall based on the scenarios used in the stress test. that said, the test also found that there is room for improvement when taking account of climate risks in risk management. also recently, the bundesbank once again conducted the lsi ( less significant institution ) stress test for the smaller german banks under our supervision. institutions were surveyed on how they assess the medium - term impact of climate risks on their business and to what extent these are already factored into their risk management. the results will be published by the bundesbank and bafin ( bundesanstalt fur finanzdienstleistungsaufsicht ) on wednesday. it would be surprising if smaller institutions were not also able to improve the way in which they depict climate risks in their risk management. in the european union, the corporate sustainability reporting directive ( csrd ) is helping to provide the necessary basis of information. previously, only enterprises with 500 employees or more were subject to reporting requirements in this regard. with the csrd, more and more enterprises will gradually be required to submit reports from 2024 onwards. forward - looking enterprises are already making preparations to regularly disclose certain climate - related information. savings banks, in particular, with their many small and medium - sized corporate customers, will thus have a significantly better pool of data. this will enable them to develop their risk management systems in an adequate and proportionate manner – in line with supervisory expectations. as supervisors, we central banks are also supporting the transition to a climateneutral economy. in this context, we must adhere to the same standards as banks. we, too, must make sure that climate risks are appropriately accounted for on our balance sheet and in our risk management, especially as we would not be able to safeguard price stability without a sound balance sheet. moreover, we, as the central bank, are also becoming more transparent. in july, for example

philipp hildebrand : snb overview of financial market activity introductory remarks by mr philipp hildebrand, member of the governing board of the swiss national bank, at the half - yearly media news conference, berne, 16 june 2005. * 1. * * developments in the financial markets financial market activity has been dominated in recent months by three key developments. firstly, the us dollar started to strengthen. secondly, long - term capital market yields declined further despite their already low levels. thirdly, changes in credit risk premiums in the different debtor categories have been more mixed than in the preceding months. despite the persistently high current account deficit in the us, the dollar has appreciated since the beginning of the year by roughly 12 % against both the euro and the swiss franc, and by approximately 7 % against the yen. the dollar benefited in particular from the willingness of foreign investors to back us financial investments. in 2004, net purchases of us securities were dominated by the strong demand from certain asian central banks. while such purchases have remained significant so far this year, private investors outside the us, too, have bought more us securities. this surge in demand is due in part to the fact that the markets continue to rate the growth prospects in the us better than those in europe and japan. the growing yield spread in favour of dollar investments as well as political uncertainty regarding the future development of the european union have also contributed to the relative attractiveness of the greenback. at present, there are few indications of any unusually pronounced imbalances between the real exchange rates of the currencies of the large economic blocs. looking at their development, it becomes apparent that they are all close to their long - term averages ( cf. graph 1 ). this suggests that the us current account deficit is not primarily a product of exchange rate distortions. it is mainly due to a comparatively high growth momentum and a low savings rate in the us. yields in the capital markets continued to fall. while this decline was weakest in the us, yields in continental europe hit historical lows. in switzerland, for instance, the yields on ten - year swiss confederation bonds reached an all - time low of less than 2 %. the extraordinarily low capital market yields reflect the market ’ s low inflation expectations. during recent months, certain concerns about economic growth have triggered a further decline in yields. both strong demand for long - term debt securities in industrialised countries ( driven by demographic factors ) and