. climate change is already anchored in the realm of central banking given its crucial implications on our statutory objectives namely, price stability and financial stability. in fact, one of the first measures i took upon assuming governorship of the bank in march 2020 was to apply for membership at the network of central banks and supervisors for greening the financial system ( ngfs ). the bank was admitted as member of the ngfs in july 2020. in october 2021, i set up the bank's climate change centre, amid the pandemic. the main objectives of the centre are to integrate climate - related and environmental financial risks into the bank's regulatory, supervisory and monetary policy frameworks, while supporting the development of sustainable finance. the centre is also expected to review the bank's internal operations with a view to reducing its carbon footprint. the climate change centre has already pursued some key initiatives to drive its climate agenda. it has created awareness in the financial sector about climate - related risks and opportunities from the transition to net zero. in particular, the guideline on climate - related and environmental financial risk management, issued in april 2022, will assist financial institutions to better assess and manage climate - related risks in their lending and investment activities, thus minimizing risks of losses from the adverse impact of climate change. the guideline contains disclosure requirements which enhances market transparency and support the assessment and pricing of risks for green projects by businesses and investors. the bank has also worked together with the ministry of finance, economic planning and development and other stakeholders to put in place the appropriate regulatory frameworks for the issue of sustainable bonds by financial institutions, the corporate sector and government. in this respect, the bank has released its guide for the issue of sustainable bonds in june 2021. the guide acts as a preliminary yet compulsory consultative document which lays the foundation for the issuance of green, blue, social, climate and sustainability bonds in mauritius. the guide sets out the requirements to be followed by the issuer such as pre - issuance structure, use of proceeds and reporting. disclosure requirements with regard to use of proceeds which constitutes one of the major criteria that an issuer of green bond need to fulfil prior to engaging with potential investors. the sustainable finance framework for mauritius was published in august 2023. it governs the issuance of specific types of sustainable debt instruments by the government of mauritius, aimed at financing the implementation of the mauritius sustainability roadmap. the proceeds from these instruments will be channelled

. calls on a bank ’ s liquidity will also arise when they are unable to roll over or maintain their existing funding. assumptions regarding the likelihood of this are based on the regulators ’ views about what forms of funding are more stable than others. going forward, these “ run - off ” assumptions should be expected to influence the funding strategies adopted by adis. to give one example : the incentive for adis to issue short - term debt to other financial institutions will be considerably reduced under basel iii, as funds borrowed with less than 31 days to maturity would need to be invested entirely in liquid assets. thus there will be a marked decline in the provision of such debt by banks. at the same time, the demand for liquid bank debt from other financial institutions, such as insurance companies and pension funds, is increasing, in part as a result of regulatory developments in those sectors. so there is a decrease in supply and an increase in demand for liquidity. normally, in economics, such a situation would result in a change in the price ( of liquidity in this case ) to clear the market. my concern is that it is not clear that the demand and supply curve for liquidity provided by the regulated financial system will intersect at any reasonable price. how this is resolved is not entirely clear. if it were to push the supply of liquidity outside the regulated system, that would not be a good development. in any case, it is quite probable that new funding instruments will emerge that seek to accommodate the new regulations. in some other jurisdictions, a greater reliance on debt with 31 - day notice periods ( given the 30 - day liquidity stress scenario ) has already been observed. regulators and financial institutions will need to ensure that this does not create a new stress point at 31 days as funding piles up at that maturity. one product where we are yet to see the effect of the new liquidity regulation on pricing is at - call deposits. relative to other types of deposits, these products are very expensive from a liquidity point of view, but they still offer interest rates that are a large spread above the cash rate. as banks focus on the liquidity costs of such products, i would expect to see these rates decline relative to those on other types of deposits. indeed, it would be surprising if the repricing doesn ’ t occur fairly soon given the liquidity regulations take full effect at the beginning of 2015. however, our liaison with banks suggests that these deposits are particularly sensitive to changes in