Banks grow anxious over ECB’s ESG criteria

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By Bill Thornhill
25 Feb 2021

Senior bank finance and capital markets figures speculated this week about where the ECB would be most likely to throw its weight in its effort to boost the sustainability of its balance sheet. With a senior eurozone central banker having recently urged it to decarbonise its assets, banks are on high alert as they anticipate sweeping changes to asset purchase and repo terms, writes Bill Thornhill.

Global central banks are expected to play a critical role in ensuring banks contribute towards keeping global warming below the 2°C limit set out in the Paris Agreement. As part of its strategic review, the ECB Governing Council is formulating new proposals to be set out in September.

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