We at the ECB conducted our first economy-wide climate stress test this year. What are the results? And what do they mean for people, companies, and banks? 

In this episode of The ECB Podcast, our host Katie Ranger discusses these questions with Vice-President Luis de Guindos and Irene Heemskerk, the head of our climate change centre.

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

Published on 22 September 2021 and recorded on 9 September and 15 September 2021.

In this episode:
01:11 – Our first economy-wide climate stress test
How climate risks affect people, companies and banks in the euro area, how our climate stress test was carried out, and its main results.

11:24 – Our role as a central bank against climate change
How climate change affects both financial and price stability, and the actions foreseen in the climate action plan we revealed in July 2021, following our strategy review. 

13: 25 – Our first guest’s “hot tip” for our listeners
Our guest Luis de Guindos shares what motivates him to work in the fight against climate change: solidarity with future generations.

15:10 – The work of the climate change centre
The purpose of our climate change centre, how things are going so far and what kind of people work there.

19:31 – The next steps of our climate action plan 
How the economy-wide climate stress test will feed into the two other stress tests that we will conduct in 2022, on banks and on our own balance sheet. 

26:14 – Our second guest’s “hot tip” for our listeners 
Our guest Irene Heemskerk shares the story behind a picture in her home office that clearly shows how disastrous the consequences of climate change can be.

Further reading:
Firms, banks benefit from early adoption of green policies, ECB’s economy-wide climate stress test shows
https://www.ecb.europa.eu/press/pr/date/2021/html/ecb.pr210922~59ade4710b.en.html 

ECB economy-wide climate stress test
https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op281~05a7735b1c.en.pdf 

ECB Blog post by Luis de Guindos: Shining a light on climate risks - the ECB’s economy-wide climate stress test
https://www.ecb.europa.eu/press/blog/date/2021/html/ecb.blog210318~3bbc68ffc5.en.html 

The ECB climate change action plan
https://www.ecb.europa.eu/press/pr/date/2021/html/ecb.pr210708_1~f104919225.en.html 

The ECB climate change roadmap
https://www.ecb.europa.eu/ecb/climate/roadmap/html/index.en.html 

European Central Bank
https://www.ecb.europa.eu

You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more pod.link/ecbpodcast

Time to act now: results of the economy-wide climate stress test

How are financial markets reacting to higher rates, a sluggish economy and geopolitical tensions? Should we worry about property markets?

Our host Stefania Secola puts these questions to financial stability expert John Fell on The ECB Podcast.

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

Published on 2 December 2023 and recorded on 27 November 2023.

In this episode:
01:08 – Financial markets’ optimism is put to the test
How are financial markets reacting to the new environment of high interest rates, a sluggish economy and rising geopolitical tensions?

06:00 – The conundrum of banks’ increasing profits and stagnant valuations
Banks’ profits are at multi-year highs, yet their valuations haven’t changed much. What factors explain this?

10:31 – Real estate markets are a source of concern
Residential and commercial property markets are feeling the impact of higher interest rates. What are the implications for banks and financial stability?

16:06 – The yin and the yang of financial stability
As the credit cycle turns, and with several vulnerabilities unravelling, can resilience compensate?

18:22 – Conclusion

Additional material:

Financial Stability Review, November 2023 https://www.ecb.europa.eu/pub/financial-stability/fsr/html/index.en.html

FSR Box 5 on Euro area bank fundamentals, valuations and cost of equity 
https://www.ecb.europa.eu/pub/financial-stability/fsr/html/ecb.fsr202311~bfe9d7c565.en.html#toc27 

Special feature B on Real estate markets in an environment of high financing costs 
https://www.ecb.europa.eu/pub/financial-stability/fsr/html/ecb.fsr202311~bfe9d7c565.en.html#toc40

The ECB Podcast: Financial stability and bank runs, June 2023 https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod230607_episode60.en.html 

European Central Bank www.ecb.europa.eu

Lifeline

When the yin meets the yang: resilience in gloomy times

The implications of crypto-assets, emerging payment technologies and Facebook’s plans to create a global digital currency, Libra – discussed by our host, Michael Steen, and guests, Dirk Bullmann, Maria Teresa Chimienti, and ECB Executive Board member Benoît Cœuré. 

Recorded on 6 and 9 September 2019.


In this episode:

(01:03) Benoît Cœuré 
The big picture: what is money, why is there a demand for digital currencies and what is the role of central banks in this field?

(11:47) Maria Teresa Chimienti
Getting technical: what are crypto-assets, what makes Facebook’s Libra different, and why is it important for central banks to research these phenomena?
  
(17:32) Dirk Bullmann
Talking innovation: what is blockchain and DLT, why are they so fascinating and how does innovation at the ECB help make payments instant?


Further reading:

Explainer: What is money?
https://www.ecb.europa.eu/explainers/tell-me-more/html/what_is_money.en.html

Explainer: What is bitcoin?
https://www.ecb.europa.eu/explainers/tell-me/html/what-is-bitcoin.en.html

Explainer: How could new technology transform financial markets?
https://www.ecb.europa.eu/explainers/tell-me-more/html/distributed_ledger_technology.en.html

Research – special feature: Distributed Ledger Technology (e.g. blockchain)
https://www.ecb.europa.eu/pub/annual/special-features/2016/html/index.en.html

Research – Occasional Paper:  Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructures
https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op223~3ce14e986c.en.pdf

Research – Economic Bulletin Article:  Understanding the crypto-asset phenomenon, its risks and measurement issues
https://www.ecb.europa.eu/pub/economic-bulletin/articles/2019/html/ecb.ebart201905_03~c83aeaa44c.en.html

European Central Bank website
https://www.ecb.europa.eu/

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

Innovation in payments: Libra, blockchain and crypto-assets

What do porridge and prices have in common? How do music and video streaming affect inflation? And is low inflation the new normal? Our host Michael Steen discusses with guests Christiane Nickel, Frank Smets, and ECB Chief Economist Philip R. Lane. 

In this episode:
(00:45)
Keeping prices stable
Why should prices go up, what is the link between wages and prices, and how does working towards our inflation target help to stabilise the economy? 
(12:07)
The new normal
How are changes in price measured, what factors drive inflation, and how do globalisation, demographics and e-commerce affect inflation? 
(23:20)
Forecasting inflation
Why do central banks need to provide accurate forecasts, how are these forecasts produced, and why can this process be challenging?


The views expressed are those of the speakers and not necessarily those of the European Central Bank.  

Published on 31 October 2019 and recorded on 10 and 14 October 2019.


Further reading

Explainer: Why are stable prices important?
https://www.ecb.europa.eu/explainers/tell-me-more/html/stableprices.en.html

Conference: Inflation in a changing economic environment
https://www.ecb.europa.eu/pub/conferences/html/20190923_inflation_conference.en.html

Speech: Monetary policy and below-target inflation
https://www.ecb.europa.eu/press/key/date/2019/html/ecb.sp190701~0c1fa3c8fc.en.html

Research: Low inflation in the euro area: causes and consequences
https://www.ecb.europa.eu/pub/pdf/scpops/ecbop181.en.pdf

Research: Expert group studying the causes of low inflation (LIFT)
https://www.ecb.europa.eu/pub/economic-research/research-networks/html/researcher_lift.en.html

Research: The impact of global value chains on the euro area economy
https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op221~38185e6936.en.pdf

Publication: Macroeconomic projections
https://www.ecb.europa.eu/pub/projections/html/index.en.html

European Central Bank website
https://www.ecb.europa.eu/

Inflation: on porridge, prices and the new normal

What was it like when the euro was launched in 1999? Where will the euro be in another 20 years? Is there a link between support for the euro and trust in the ECB? Our host Michael Steen discusses these questions with expert guests Erkki Liikanen, Martin Wolf and Siria Angino. 
The views expressed are those of the speakers and not necessarily those of the European Central Bank.  
Published on 28 November 2019 and recorded on 5 September, 23 October and 25 October 2019.

Further reading 

Webpage: The euro at 20
https://www.ecb.europa.eu/euro/html/index.en.html

Quiz: The euro at 20
https://www.ecb.europa.eu/euro/html/quiz.en.html

Explainer: How do you benefit from the euro
https://www.ecb.europa.eu/explainers/tell-me/html/benefits-euro-euroat20.en.html

Explainer: How does the euro help Europeans do business?
https://www.youtube.com/watch?v=WsxPlyzmkqU&feature=youtu.be

Explainer: How have Europeans benefited from the euro?
https://www.youtube.com/watch?v=HeXDwUsz57o&feature=youtu.be

Speech: 20th anniversary of the euro
https://www.ecb.europa.eu/press/key/date/2019/html/ecb.sp190115.en.html

Speech: Past and future of the ECB monetary policy
https://www.ecb.europa.eu/press/key/date/2018/html/ecb.sp180504.en.html

Speech: The future of the euro area economy
https://www.ecb.europa.eu/press/key/date/2019/html/ecb.sp191122~0c1f115db0.en.html

Did you know?: More fact about the euro
https://europa.eu/euroat20/the-euro-in-numbers/

Webpage: the banking union
https://www.bankingsupervision.europa.eu/about/bankingunion/html/index.en.html

Fourth ECB Annual Research Conference
https://www.ecb.europa.eu/pub/conferences/html/20190905_4th_ecb_annual_research_conference.en.html

Speeches on the capital markets union
https://www.ecb.europa.eu/home/search/html/capital_markets_union.en.html

European Central Bank website
https://www.ecb.europa.eu/

The euro: a tale of two decades

Why do we need banking supervision at the European level? Should a bank be allowed to fail? What does a normal day look like for a supervisor? What are the supervisory challenges posed by Brexit? Our host Michael Steen discusses these questions with expert guests Andrea Enria, Pien van Erp Taalman Kip and Linette Field. 
The views expressed are those of the speakers and not necessarily those of the European Central Bank.  

Published on 21 January 2020 and recorded on 6 December 2019.

In this episode:

(01:03) A safe and sound banking sector
Why do we need banking supervision at the European level, why should banks be allowed to fail and why is transparency towards private investors a priority in a bail-in world?

(12:13) A day in the life of a supervisor 
What does a banking supervisor do, what are Joint Supervisory Teams and why can’t supervisors be of the same nationality as the bank they supervise?
  
(20:43) Challenges for banks: profitability, cybersecurity and Brexit
Why is it important that supervisors understand the risks banks face, why do they care about banks’ profits and what are the challenges posed by Brexit?

Further reading:

Explainer: SSM explained in 3 minutes
https://www.youtube.com/watch?v=xC_2N0Y20qQ

Webpage: Relocating to the euro area
https://www.bankingsupervision.europa.eu/banking/relocating/html/index.en.html

Supervision Newsletter: Brexit: operational risk increases when banks delay action
https://www.bankingsupervision.europa.eu/press/publications/newsletter/2019/html/ssm.nl191113_2.en.html

Supervision Newsletter: Brexit: stepping up preparations
https://www.bankingsupervision.europa.eu/press/publications/newsletter/2019/html/ssm.nl190814.en.html

Speech: A Enria, Chair of the ECB’s Supervisory Board: Supervising banks – Principles and priorities
https://www.bankingsupervision.europa.eu/press/speeches/date/2019/html/ssm.sp190307~28d206eae5.en.html

Speech: A Enria, Chair of the ECB’s Supervisory Board: The banking union – a personal view on its past, present and future
https://www.bankingsupervision.europa.eu/press/speeches/date/2019/html/ssm.sp191030~a66780e0a5.en.html

Speech: A Enria, Chair of the ECB’s Supervisory Board: Is less more? Profitability and consolidation in the European banking sector
https://www.bankingsupervision.europa.eu/press/speeches/date/2019/html/ssm.sp190704~1f442782ac.en.pdf?2773aa57fc4093122a0effc8247b6a8b

Speech: A Enria, Chair of the ECB’s Supervisory Board: A binary future? How digitalisation might change banking
https://www.bankingsupervision.europa.eu/press/speeches/date/2019/html/ssm.sp190311~2af7fb032e.en.html

https://www.ecb.europa.eu/

Supervising banks: profits, transparency and Brexit

What is the role of financial markets in the economy? How does the coronavirus pandemic affect markets? Is the current crisis also a financial crisis? Our host Michael Steen discusses these questions with ECB Executive Board member Isabel Schnabel.

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

Published on 25 May 2020 and recorded on 15 May 2020.


In this episode:

(01:57) The role of financial markets in the economy
How they act as intermediaries between savers and borrowers, how they react in case of a shock and why their stability is key to ensuring a well-functioning economy.

(05:14) The coronavirus and financial markets
How financial markets have responded to the coronavirus shock and why this is different from the 2008 financial crisis.

(10:26) The ECB’s measures to ease lending
How our targeted lending measures aim to help people and businesses, the particular role of the Pandemic Emergency Purchase Programme and how the ECB works with other central banks to keep financial systems working smoothly.

(17:03) International cooperation in times of crisis: swap lines
How swap lines between central banks work and how these agreements help keep financial systems around the world working smoothly.


Further reading:

The ECB’s response to the coronavirus pandemic
https://www.ecb.europa.eu/home/search/coronavirus/html/index.en.html
https://www.bankingsupervision.europa.eu/home/search/coronavirus/html/index.en.html

Explainer: Tell me more: What are currency swap lines?
https://www.ecb.europa.eu/explainers/tell-me-more/html/currency_swap_lines.en.html

European Central Bank website
www.ecb.europa.eu

Coronavirus: zooming in on financial markets

The European Central Bank Podcast – bringing you insights into the world of economics and central banking. 

Our host Stefania Secola talks to experts about the topics and trends that matter to the eurozone economy today.

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

When the yin meets the yang: resilience in gloomy times

The ECB Podcast

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