It is too early to say whether these will be reserve requirements use juno’s stunning photos or capital requirements. If the reserves are already zero because the loan is good, then there is no way. To additionally take into account the fact that it is also green. We are currently discussing various options. Bas on the results of. The internal discussion, we will publish a consultative report with alternative proposals. And then we will discuss these options with the market.
Regulations The first is the lack of information
I have already said that we have issu disclosure recommendations and some of our largest companies are already disclosing information bas on international standards. We have studi the reports of about 30 companies. But the vast majority of companies do not disclose information sufficiently and do not conduct the necessary calculations and assessments. Therefore, the first thing that nes to be done is to create conditions for companies to disclose and banks to receive information.
The second problem Usually, how regulation is set up
is by taking historical information about risks, usually data on defaults and the financial position and behavior of borrowers. Bas on this, default probability models are built, and regulation is built on their basis. But in the case of climate risks, historical information is not suitable for developing regulation for the frase an ai-power platform that includes keyword future. Because historically, the probability of these risks being realiz is quite low, much lower than the future probability of risks being realiz. Therefore, a scenario approach is ne. We are currently working on scenarios, and attempts america email are being made through scenarios to understand how and whom the energy transition will affect. This will help us better understand how to set up regulation.