makes an important contribution to our thinking and approach to managing climate and nature - related risks in a coherent manner. importantly, the financial sector needs to come to grips with the reality that like climate, nature - related risks are already presenting a significant threat to our economies and society that can no longer be ignored. the findings of this report lend impetus to the need to strengthen capacity in this area. the scientific community continues to issue the ‘ code red for humanity, ’ and with recent events, including the pandemic, floods and bushfires, the message could not be clearer. ecosystem and planetary health matters to economic and financial stability. while the primary responsibility for addressing these priorities rests with governments, the financial industry and authorities have a critical interest in deepening our understanding and appreciation of the interactions between climate and nature - related risks – because how these risks evolve both affect and are affected by the actions of financial institutions. this would enable us to also seize opportunities to tackle these “ twin challenges ” in an integrated manner. it is my sincere hope that today ’ s event, along with the release of the report, will encourage broader dialogue and increase awareness around nature - related risks and opportunities, in turn paving the way for concrete action on this important front. i would like to thank the world bank for this fruitful collaboration, and the esteemed speakers joining us today. i look forward to the engaging sessions ahead. read report : an exploration of nature - related financial risks in malaysia see also : bnm ’ s climate change website ipbes. 2019. “ the global assessment report on biodiversity and ecosystem services : summary for policymakers. ” [ link to ipbes ] 2 world economic forum new nature economy series [ link to pdf ] 2 / 3 bis central bankers'speeches 3 un biodiversity page [ link ] 4 sdg 8. 5 sdg 3. 6 " life on land ” is sdg 15, “ life below water ” is sdg 14. 7 network for greening the financial system. 3 / 3 bis central bankers'speeches

standards are clear for lenders to reduce unintended consequences for consumers. though clear, the standards are intended to be not overly prescriptive, so as to preserve access to responsible credit while amply protecting consumers. our proposal is also comprehensive, covering most mortgage loans with certain protections and the entire subprime market with certain more specific regulations. while comprehensive, the proposal would focus protections where the risks are greatest and preserve consumers'access to responsible credit. our effort to produce robust, clear, and comprehensive rules was based on a rigorous analysis of available qualitative and quantitative data. we have put this proposal out for public comment until april 8 and eagerly seek suggestions to be able to craft the best possible final rule. comprehensive scope let me say more about the comprehensive scope of this proposal. it would apply stricter regulations to higher - priced mortgage loans, which we have defined broadly, and it covers all types of mortgage lenders, unlike guidance that only applies to federally insured banks. we were particularly interested in ensuring that protections remain strong over time as loan products and lending practices change. our analysis of the data suggested that the troubles in the mortgage market generally arise not from a single practice in isolation, but instead from the complex ways that risk factors and underwriting practices can affect each other, sometimes called " risk layering. " therefore, we have proposed using a loan's annual percentage rate, or apr, to determine whether the loan is covered by stricter regulations. 5 because the apr is closely correlated to risk, the proposed protections would cover loans with higher risks rather than single out particular risk factors or underwriting practices. with the apr thresholds we have proposed, we expect that the new protections would cover the entire subprime mortgage market and the riskier end of the " near prime " market, the latter also known as the " alt - a " market. covering part of the alt - a market would anticipate possible actions by lenders to avoid restrictions on subprime loans priced near the threshold. it would also address real risks to consumers in the alt - a segment. this segment grew very rapidly, and it layered risks, such as undocumented income, on top of other risks, such as nontraditional loan structures allowing borrowers to defer paying principal and interest. however, we have heard from commenters who have expressed concern that in the current market environment, the proposed trigger could cover the market too broadly, and we will carefully consider the