of climate change and actions to mitigate them also pose risks for both insurance companies and banks. it is well known that the climate change - related risks may be divided into two categories : physical and transition risks. this requires banks to consider climate change - related risks and the transition to a low - carbon economy in their integrated risk management. one of our panelists, mr. sean kidney, co - founder and ceo of climate bonds initiative, will be able to give us an overview of the evolution and prospects of green financing instruments, in particular green bonds. meanwhile, ms. danae kyriakopoulou, omfif´s8 chief economist and director of research, will give us her insight into this adaptation by the financial sector to the challenges posed by climate change risks. thank you for your participation in today´s panel. as regards international collaboration in the field of sustainable finance, i believe both the paris agreement and the 2030 agenda for sustainable development acted as a wake - up call for supervisors and central banks to join forces, setting in motion a whole agenda of policies intended to contribute to the objective of avoiding this increase above 2oc. in this short period of time, many initiatives, both from the official and private sectors, are being undertaken. let me cite a few examples, - the task force on climate - related financial disclosures, created at the request of the financial stability board but comprising in its entirety members of the industry. this task force has produced voluntary disclosure standards for companies in general, which are becoming more and more relevant, as investors, consumers and corporates demand sustainability - related information to make informed decisions. - the european commission action plan on financing sustainable growth, which should contribute to making the eu a leading force in the global fight against climate change. - the international platform on sustainable finance. - the coalition of finance ministers for climate action, which comprises governments from more than twenty countries joining forces to address the challenges posed by climate change. we are also honoured to have with us ms. ana de la cueva, secretary of state for economic & business affairs, who will close this conference and inform us about this initiative. - last, but certainly not least, i want to mention the network of central banks and supervisors for greening the financial system ( ngfs ), created two years ago as a “ coalition of the willing ” and a voluntary - based forum. the ngfs has grown from 8 members to over 50 since 2017, which is a clear sign of

##ally important banks 7 were allowed to pledge their residential property loans as collateral. this has helped the banks to conserve their liquid assets amid an uncertain economic climate. credit and insurance reliefs mas and the financial industry extended late last year the credit and insurance relief measures for individuals and smes that were launched at the height of the pandemic crisis in march 2020. these extended measures were more targeted, providing individuals and smes facing continued cashflow difficulties more time to transition to full loan and premium payments. as a sign of improving economic conditions, the take - up of support for the extended relief measures was more than 80 % lower than the first set of measures. 8 5 / 9 bis central bankers'speeches this suggests that many individuals and businesses have managed to resume full loan and premium payments. mas and the financial industry recently extended the availability of the current set of credit relief measures by another three months, till end - september 2021. this provides affected businesses and individuals with some immediate cashflow relief in light of the recent phase 2 ( heightened alert ) restrictions. the financial industry will continue to provide bilateral assistance to meet the different needs of customers even after the relief measures expire. financial stability the financial system has weathered covid - 19 well thus far. banks entered the crisis from a position of strength and have been a source of stability and support for individuals and businesses throughout the crisis. mas ’ concerns at the onset of the crisis that defaults among weaker corporates could strain banks ’ profitability and capital positions have not materialised. the domestic systemically important banks have started the year with strong capital positions. in fact, their aggregate cet1 ratio has held firm, at 14. 7 % in the first quarter of 2021 compared to 14. 4 % prior to the onset of covid - 19. although default rates have seen a slight uptick, the banking system ’ s non - performing loan ratio has remained largely stable at around 2. 4 % as at q1 this year. mas recognises however that problem loans can take time to surface. borrowers on full or partial loan moratoriums may not show signs of financial stress, especially if they are also obtaining financial support from the government. as support measures taper off, banks will have greater clarity about the repayment ability of their borrowers. it is good that our banks have set aside provisions against potential bad debts. mas is conducting additional stress tests to assess whether it is necessary to extend the current dividend restrictions on local banks and