The phenomenon of what is referred to as “zombie institutions” is institutions that have financial statements that indicate they're a going concern when they are not, in fact, a going concern. In terms of managing that risk for financial institutions, assume for a minute that the zombie institution in question is turned into a zombie by some form of climate risk. A financial institution has agency. It has the ability to deem that loan to a zombie as non-performing and then leverage the courts to work it out.
What it takes at the financial institution is a will to act. Our job in putting together bank regulations, whether in respect of climate risk, credit risk or what have you, is to create a series of expectations and principles that cause our institutions to identify problem credits and work them out faster.