Tagged with '#sustainable economics'

WILL THE EUROPEAN CENTRAL BANK GET IT NOW?


Is Lagarde on the challenge of leading the bank in a climat awakening Europe?

My personal view is that any institution has to actually have climate change risk and protection of the environment at the core of their understanding of their mission,” Ms. Lagarde said.


Lagarde is pledging to make the European Central Bank more conscious of the environment as she now is confirmed as its new president. Lagarde has urged the European Parliament to start a project to create a unified classification system on what may be considered environmentally sustainable investments.
The European Central Bank could be open to channeling more of its bond purchases toward economic sectors that meet such criteria, she said. The European Central Bank has increased it´s scrutiny. The bank recently warned that “more frequent and severe disasters” would hit the banking and insurance industries, including the erosion of the value of collateral and assets held by banks, and insurance liabilities related to weather-linked catastrophes. An unexpectedly rapid shift by investors away from fossil fuels could also weaken bank balance sheets and destabilize the financial system, the bank added.
But the bank itself has also faced criticism. Environmental organizations have accused the European Central Bank of buying so-called dirty bonds from companies in industries that are said to be polluting, including cement makers and auto manufacturers, as part of its program to increase liquidity in the eurozone economy.

My personal view is that any institution has to actually have climate change risk and protection of the environment at the core of their understanding of their mission,” Ms. Lagarde said.

She will take over one of the world’s most powerful monetary institutions in November.
Members of the European Parliament — where political parties with an environmental platform made significant gains in elections this summer — also peppered her repeatedly with queries about the need to more effectively integrate fighting climate change into the bank’s mandate.

“The primary mandate is price stability,” she said, answering to members of the economic and monetary affairs committee. “But it has to be embedded that climate change and environmental risk are mission critical.” Asked whether she would shift the European Central Bank’s strategy to focus on buying bonds of nonpolluting companies, Ms. Lagarde was noncommittal but promised to review the situation.
Lagarde added that the bank had already been buying so-called green bonds that are earmarked for climate and environmental projects, but that there weren’t many available because the market was still being developed. Still, she said, if the central bank signals an interest in those assets, it could encourage a more rapid expansion of the market.
A few years ago bankers barely mentioned a warming climate in their assessments of the economy or of the global financial system. Today over 30 central banks and regulators not including those in the United States and Brazil have joined forces in a group called the Network for Greening the Financial System to focus on the potential financial consequences of global warming.
Founded by the Bank of England governor Mark Carney who first warned of the economic damage of climate change in a stark 2015 speech. And many of the world’s biggest companies, including Silicon Valley tech firms and large European banks, are preparing for the possibility that climate change could substantially hit their profitability within the next five years, according to a recent analysis of corporate disclosures.
“Lagarde could make the E.C.B. greener,” Sven Giegold, a German and co-leader of the Green Party members in the European Parliament, said in a statement after the hearing. “Lagarde will put climate risks at the center of financial stability. Lagarde has understood, that economics and ecology must go together.”


SOURCE: NY TIMES 4 September 2019

Is our bankingsystem threatened?

The battle lines have been drawn and the troops assembled. On the one side stands the combined might of the banking cartels, centuries of deeply entrenched financial infrastructure supporting them. And on the other side stands a handful of crypto companies armed with little more than a passionate plea: “Ditch the legacy system and come join us. Where we’re going, you won’t need banks.”

It’s an enticing call – but is anyone heeding it? Every couple of months, a new trend comes along that captures column inches and crypto Twitter chatter, before everyone moves on to the next new thing. Last month it was defi, before that IEOs, and before that exchange tokens. Right now, the hot topic is crypto lending, and it comes bearing an intriguing question: are crypto lending platforms a solution to a common problem, or a solution in search of a problem to wrap itself around?

Crypto Lending Platforms Prepare to Assail the Banking System?

Before we attempt to answer that, some basic facts: getting a bank loan for personal or business use is extremely hard, verging on the impossible these days. Unless you have property you can collateralize against, you’ll struggle to get a loan, and even if you do, the interest will likely be exorbitant. Gone are the days when you could walk into your bank, have a sit down with the manager and thrash out the terms of a loan with which to start your own business. Attempt that today, casually dropping into the conversation that you were planning your own crypto startup, and not only would you be refused credit, but you’d be liable to have your account closed. Such is the suspicion with which the legacy financial system views crypto. They’ll be proven wrong eventually, around the same time as the last of their venerable banking houses are being converted into nightclubs and apartments.

Crypto Lending Platforms Prepare to Assail the Banking System?

From Bricks and Mortar to Binary Code Bartlomiej Wasilewski is the founder of Marshal Lion Group, a tokenized lending market that provides non-bank loans for businesses and individuals. He told news.Bitcoin.com: “The digitization of finance is inevitable, not just within the crypto sector, but also more broadly, as shown by the rise of microloan platforms that enable individuals to lend capital to businesses, while retaining oversight over how it is deployed, and the ability to witness the benefits of their investment in action and be remunerated for their services.” He added: Within the crypto space, lending is about more than simply attempting to mirror the products to be found in the traditional financial system.

A lot of crypto businesses struggle to obtain banking facilities, and for these entities, having access to alternative sources of capital, be it as a bridging loan or to support long-term growth, is vital. Wasilewski’s vision is slowly materializing, but the wounded banking system is not yet in its death throes. It will likely take a decade or more before digital currencies render it obsolete. In the meantime, those who have been refused credit by financial institutions are being urged to turn to crypto lending. But are crypto lending protocols and platforms enterprise-ready?
And if so, what do they have to offer entities that have been turned away by the banking system?

 

Source: Bitcoin News 29 August 2019

Huawei optimistic about its sustainable development

Huawein logo over building in China, Shenzhen.

Despite obstacles and challenges the tech giant Huawei is facing, the company's chairman Liang Hua is optimistic about its sustainable development. "Huawei will definitely survive and it will get better and better", Liang said at Huawei headquarters in Shenzhen. On July 12th, Huawei released a report on sustainable development, emphasizing the company's hard work to broaden its technology to customers around the globe. "Huawei's sustainable development is critical to ensuring the technological development of the global network and IT industry, as well as the stability of the network", Liang added. The tech giant operates in more than 170 countries and regions, serving over 3 billion people worldwide.

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