FROM THE BLOG
To avoid another subprime crisis, banks must help consumers to renovate their homes
The latest ECB climate stress test shows that banks could face a wave of insolvencies on their mortgage lending as energy-inefficient homes make their clients vulnerable to higher energy prices. Banks’ unpreparedness to collect data on the energy efficiency of their real estate exposures exacerbates this risk even more. This is a wake-up call for the EU and governments to urgently strengthen supervision and oblige banks to unlock finance for the renovation wave.
The ECB finally adopts green rules for its monetary policy
The European Central Bank (ECB) finally announced a clear shift away from its sacrosanct “market neutrality” principle, as it will introduce green criteria in its rules for corporate bond purchases and refinancing operations. While this is a significant improvement, the introduction of these measures remains slow and applies to only 5.87% of the ECB’s balance sheet.
Summer Reading List 2022
In need of some reading ideas for this summer? Look no further! We have compiled a list of books that the Positive Money Europe team has been reading. The topics range from the role of central banks to the intellectual history of money, including a practical guide on how to campaign. Take a look!
New research paper: The role of the EU Parliament in the ECB’s green shift
A new study traces how climate change became a topic in Europe’s monetary policy. Utilising a novel and extensive dataset, it shows how the European Parliament, early on, called for a greener monetary policy and eventually allied with members of the ECB to forge a consensus on monetary policy and climate change. The study was financially supported by Positive Money Europe and authored by Dr. Elsa Massoc, a postdoctoral researcher at the Center for the Advanced Studies of Law and Finance.
Christine Lagarde re-affirms willingness to consider lower rates for climate investments
Despite its decision to start raising interest rates, the European Central Bank President Christine Lagarde signaled an interest in introducing a “green TLTRO” system – a reference to Positive Money Europe’s proposal which is now making a comeback in the debate.
A more “ethical” ECB on the way?
The ECB’s rule of conduct and ethical framework is still lagging behind the US Federal reserve.
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