haruhiko kuroda : sustainable finance - entering a new phase of implementation remarks by mr haruhiko kuroda, governor of the bank of japan, at the paris europlace tokyo international financial forum 2022, tokyo, 15 november 2022. * * * introduction it is a great pleasure to be invited to the paris europlace tokyo international financial forum. paris europlace brings together a wide range of participants in the financial sector, and it has contributed greatly to the development of financial services and financial markets. the influence of paris europlace is not limited to france and europe ; it is actively engaged in communication on a global basis. at today's forum, i believe you had very meaningful and lively discussions among financial professionals from japan and france. i understand that this is the 25th edition of the paris europlace tokyo international financial forum, and it is my great pleasure and privilege to have the opportunity to speak at such a memorable occasion. in relation to " france - japan : new developments in sustainable finance, " one of the themes of this forum, i would like to share my views on recent initiatives in sustainable finance to address climate change, while also touching on the progress made in japan. i. role of finance in addressing climate change climate change is a global issue that will have long - term and far - reaching implications both for society and for economic activity. given its " negative externalities, " all entities - individuals, firms, and governments - - have to take responsible actions beyond their individual interests. to address climate change, we need a multi - pronged approach across a wide range of fields. in particular, sustainable finance has a crucial role to play in our efforts to address climate change and steadily achieve decarbonization in society as a whole. this is because finance functions as an intermediary, bringing all these various social agents and entities together through services and markets. at last year's forum i talked about three essential elements for finance to successfully fulfill this role, that is, ( 1 ) making the financial system more resilient against climaterelated risks, ( 2 ) mobilizing financial resources to facilitate a smooth transition to net zero, and ( 3 ) making the most use of market functions with enhanced disclosure. looking back over the past year, i feel that financial institutions and financial markets around the world, as well as related policy bodies, have made great progress in various initiatives that promote these three elements, despite increased geopol

and credit quality may deteriorate. not in one's own bank, but among competitors. the banks face the major task of incorporating the new international accounting standards and the forthcoming capital - adequacy rules – basel ii. this requires considerable resources. it is also an important task requiring each bank to assess its need for buffers against bad times. other parts of the financial sector have also devoted many resources to new legislation and its implementation. the european commission has now indicated that all major legislation is in place in the financial area. now we need to make the single market for financial services work. the imf is assessing the entire financial system in denmark as part of its financial sector assessment program – fsap. let us take this as a good opportunity for a service check. it is good to take a fresh look at whether we have an optimum structure in relation to international standards. the imf has just concluded a two - week visit to denmark. i would like to thank the members of the danish bankers association and a large number of the other players in the financial system for their efforts in connection with this visit. fsap is a long process and there is still considerable work ahead in the coming months. the imf's final assessment of denmark and its recommendations are expected to be presented in mid - 2006. bodil ( nyboe andersen ) has asked me to extent her gratitude for your fine cooperation – not only over the past year, but over many years. i hope this fine cooperation will continue in the years to come.