Bank of England's high-carbon financing a 'moral hazard', MPs warn The Bank of England risks creating 'moral hazard' by continuing to finance high-carbon projects and companies and providing no-strings-attached financing to carbon intensives companies, the Environmental Audit Committee (EAC) has warned. The bank doubled its corporate bond programme in response to Covid-19. Image: George Rex, CC BY SA The EAC has written to Governor of the Bank of England, Andrew Bailey, as a follow up to its evidence gathering as part of its ‘Greening the post-COVID recovery’ inquiry. The inquiry found that the Bank of England’s corporate bond purchasing was not aligned with the Paris Agreement.