34 central banks issued an open letter five days ago, outlining how the world’s big banks reckon they should act as climate change accelerates. More worrying, though, is the language of normally reticent bankers towards the end of the letter:
“The stakes are undoubtedly high, but the commitment of all actors in the financial system to act on these recommendations will help avoid a climate-driven “Minsky moment” – the term we use to refer to a sudden collapse in asset prices.”
My corporate career, among finance professionals, never produced this kind of emotion. The back of my neck crawls.