European Central Bank – Blog

The Eurosystem has accepted Scope as a new rating agency alongside Fitch, Moody's, S&P and DBRS. This has a number of implications, including a wider range of credit opinions and expertise being considered for monetary policy purposes. The ECB Blog explains. By Diana Gomes and Anamaria Piloiu Credit rating agencies are private companies which assess the creditworthiness of issuers of financial instruments – be they governments, commercial banks or corporates.…

Banks are talking more about the environment. But does such talk go hand in hand with greener lending? The ECB Blog finds a disconnect: banks talking more about their environmental policies and goals tend to lend more to brown industries. Banks have a crucial role to play in financing the transition to a greener economy. In light of increased concerns about sustainable finance, supervisory authorities and investors closely monitor banks’…

  Europe must push the green transition forward if it wants to remain competitive in the world. New technologies and green energy aren’t just better for the environment, they also make good economic sense. To be successful, however, the transition needs to be just and inclusive. Climate change is accelerating. Our time to limit global warming to 1.5°C is running out. We can either play our part within our mandates…

Making cross-border payments cheaper, faster, and easily accessible would bring huge benefits to businesses and households alike, especially in emerging markets and developing economies. By Fabio Panetta In recent decades, the world has witnessed a remarkable surge in cross-border payments, driven by the globalisation of trade, capital and migration flows. Global payments are expected to skyrocket from USD 190 trillion in 2023 to a staggering USD 290 trillion by 2030.[1]…

Words matter as much as actions for central banks. Because changes in tone can presage shifts in monetary policy. We have created an index to measure and compare the tone of policy communication by the ECB and the US Fed. This ECB Blog post talks you through the findings. By Jean-François Bouscasse, Daniel Kapp, Danielle Kedan[1], Thomas McGregor and Julian Schumacher What central banks say can influence prices on financial…

After decades of being both hero and villain, globalisation is said to be on the retreat. There is a common perception that companies are diversifying supply chains and relocating business closer to home. So, are we heading towards deglobalisation? We dig deeper and find that the data tell a different story. By Martina Di Sano, Vanessa Gunnella, Laura Lebastard The increasing integration of more and more economies into international trade…

The digital euro is a necessary step to ensure that our monetary system keeps up with digital advances. It will be widely accessible and easy to use while preserving privacy – just like cash. Contribution by Fabio Panetta, Member of the Executive Board of the ECB, and Valdis Dombrovskis, Executive Vice-President of the European Commission Our world is changing. Digitalisation has transformed society in ways that would have been difficult…

Digitalisation has boosted some European firms’ productivity, but many are still on the digital sidelines. That is a pity as faster digital adoption could make our economies much more productive. This ECB Blog post looks at where and how digitalisation can be a game-changer. By Robert Anderton, Vasco Botelho and Paul Reimers Digitalisation promised to be a productivity gamechanger, yet we are still facing a “productivity paradox” at the aggregate…