secured by real estate in high climate risk areas were more expensive than loans with the same characteristics but in safer regions. however, the effect we find is economically small, so it seems that the climate - related risk is still underpriced by the average bank. let me conclude. good, reliable data are a cornerstone of sound risk management. this also holds true for managing the risks stemming from climate change. thanks to the ongoing dialogue between supervisors and banks, some major stumbling blocks have already been overcome. the good practices observed for collecting real data on energy performance 2 / 3 bis - central bankers'speeches show that, while the task is challenging, it is far from impossible. sharing your practices with peers will help more banks to improve the availability of energy performance data. so we are all looking forward to hearing about your experiences and learning from what worked well. the ongoing climate and nature crises will inevitably render our economy more susceptible to shocks. from a risk - based perspective, let me reassure you that ecb banking supervision will continue to play our part in spurring on banks to prepare for these risks. to succeed in our common goal of making banks resilient to climate and nature - related risks, it is vital that we keep up this dialogue with you – the industry – and encourage the exchange of good practices in the years to come. i would like to thank you for coming to frankfurt today to share your experiences. 1 see european commission ( 2024 ), energy performance of buildings directive. 3 / 3 bis - central bankers'speeches

regarding credit and market risks. and we will base our position in international supervisory and regulatory groups on the knowledge and experience we gain during the project. our review is certainly a huge project – in 2017 alone, we will be conducting more than 100 assessments, each of them covering three to four models. nevertheless, the benefits will be equally large. in addition to business models and risk management, we are currently focusing on a third issue : credit risk. most prominently, this includes the issue of non - performing loans that i mentioned before. it is the banks themselves that have to tackle this issue as quickly as possible. however, they sometimes face obstacles in the form of inadequate national legislation and national judicial frameworks, as described in the stocktake of national practices we published in september. here, policymakers can play an important role by reforming relevant legislation. as supervisors, we can assist the banks by pointing out best practices and ensuring that they are applied. today, we will close the public consultation on our guidance for banks on dealing with non - performing loans. that guidance takes the form of recommendations to banks and defines a number of best practices that we have identified. it sets out our supervisory expectations and serves as a basis for supervisors to evaluate how banks handle nonperforming loans. conclusion ladies and gentlemen, to sum up : banks are more resilient than they were just a few years ago. however, they still have to improve their fitness. they have to adjust to a new economic environment ; they have to adapt to the digital world ; and they have to become more efficient and 2 / 3 bis central bankers'speeches deal with legacy assets. this is no small task, but it has to be done. moreover, the banks have to get used to a new regulatory framework. that framework should be finalised by the end of the year, and it should be finalised at the global level. banking became a global sector years ago, and regulation must follow in order to ensure stability. thank you for your attention. 3 / 3 bis central bankers'speeches