The SAFE Policy Center and the Centre for Economic Policy Research (CEPR) organize and cordially invite you to attend a presentation of the European Central Bank (ECB) / European Systemic Risk Board (ESRB) report on
The Macroprudential Challenge of Climate Change
to be held online on 6 October 2022. 11:30 a.m. - 1:00 p.m., via Zoom
Download the report
Download the annexes
Speakers: Paul Hiebert, Stephan Fahr, Katarzyna Budnik, and Michael Grill (all ECB)
Moderator: Jan Krahnen (Leibniz Institute SAFE and CEPR)
Past years have seen the development of analytical foundations for measuring climate-related financial risk by linking climate vulnerability to standard financial risk measurement. The latest ECB/ESRB report on climate change raises the understanding of the interdependencies and spillovers to gauge implications for systemic risk. In addition, the work focussed on a forward-looking dynamic view of the modelling of financial stability risks stemming from climate change, noting that the past is unlikely to be a good guide. To contain future systemic risks from climate change to the financial system, macroprudential policy may have an important role to play. The report discusses the options for delivering a coordinated European macroprudential response, and considers a range of possible instruments that could be used in this respect.
Paul Hiebert heads the Systemic Risk and Financial Institutions Division of the ECB. In this role, he leads systemic risk analysis for the euro area feeding into the ECB’s flagship Financial Stability Review, as well as macroprudential policy for the largest euro area banks. Since 2019 he has been leading climate-related risk and financial stability analysis with the corresponding publication of the ECB’s and ESRB’s annual report. His current role builds on over 20 years of experience within the ECB, the IMF, the Reserve Bank of Australia and the Canadian Department of Finance in various capacities - spanning economic, financial and policy functions for a wide range of countries. He has published on a diverse set of topics, including financial cycles, global banking, climate change issues, macroprudential policy, housing markets, and fiscal policy. He holds an M.A. in Economics from McGill University in Montréal.
Stephan Fahr leads a team on structural banking issues within the Systemic Risk and Financial Institutions Division of the ECB. In this role he analyses interconnectedness in the financial system, assesses structural capital buffers for euro area larger banks and develops the monitoring framework for climate-related risks. He has joined the ECB in 2007 accumulating experience in research, monetary policy and macroprudential policy. His publications cover topics of monetary policy implementation, labour markets, systemic risk, macroprudential policy and climate change. He holds Ph.D. from the EUI,Florence.
Katarzyna Budnik is currently Adviser in the Stress Test Modelling Division at the ECB. She is responsible for macroprudential stress test and policy assessment and in recent years has developed and led climate-related stress testing methods with close interaction among macroprudential authorities in the euro area. She joined the European Central Bank in 2010 and has worked in different areas of Financial Stability and Economics. Prior to moving to the European Central Bank she was heading the Forecasting Division at the National Bank of Poland. She received her PhD degree with honors from the Warsaw School of Economics. Her research interests include macroprudential and monetary policies, banking, macroeconomic modelling and labour markets
Michael Grill is currently Team Lead in the Financial Regulation and Policy Division at the ECB. In this role he is contributing to the development of the macroprudential toolkit for non-banks and the policy toolkit in response to climate risk. His publications cover topics related to the regulation of financial intermediaries and markets, sovereign risk, macroprudential policy and climate change. His current role builds on over 10 years of experience contributing to policy development in European and international workstreams within the Basel Committee on Banking Supervision, the Financial Stability Board and the European Systemic Risk Board. He holds a Ph.D. in Economics from Mannheim University and a Diploma in Mathematical Finance from Technical University of Munich.
The policy web seminar is a part of the SAFE-CEPR European Financial Architecture Research Policy Network.