Disciplining the Neoliberal Bank: Credit Risk Regulation and the Financialization of Loan Management

Baud, Céline; Chiapello, Ève

doi:10.2139/ssrn.2417396

Cited by 3 publications

(1 citation statement)

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“…In essence, the cultivation of markets for a 2-degree transition consists in upgrading the risk management of the financial system to make sure it can deal with climate change. Much in line with the attempt by Banking Regulators to educate banks on risk management systems in the vein of Basel II (Baud andChiapello, 2014; Young, 2012), public authorities' role is to set up the institutional framework and educate private actors to do the right thing. How could these frameworks help?…”

Section: Layer 1: Climate Change As a Financial Stability Risk (2015 ...mentioning

confidence: 99%

Beyond market neutrality? Central banks and the problem of climate change

2023

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Starting with a landmark 2015 speech by Mark Carney on the ‘Tragedy of the Horizon’, climate change entered central banking discourse, causing some of its key convictions to come under new scrutiny. This article traces how initially climate change was firmly embedded in a conventional framework of ‘market completion’ that would allow financial markets to price in the negative externality. Yet, over the course of the last seven years, central banks have repositioned their role regarding this problem, taking on a much more active stance which calls into question the notion of ’market neutrality’. To trace these discursive changes, this article identifies three discursive layers formed around market-based mechanisms, responsible investment and monetary policy. We show that in the unfolding of the debate, the issue of climate change has altered the self-understanding of central bankers and driven them towards a more active stance where they acknowledge that central bankers shape and make, and not only ‘mirror’, market forces.

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Section: Layer 1: Climate Change As a Financial Stability Risk (2015 ...mentioning

confidence: 99%