The Office of the Comptroller of the Currency today withdrew its participation in the interagency principles for climate-related financial risk management for large financial institutions.
In a statement, the OCC called the principles for guiding banks on climate-related financial risk “overly burdensome and duplicative.”
“The OCC’s existing guidance for banks to maintain a sound risk management framework applies to all activities conducted by supervised institutions and includes potential exposures to severe weather events or natural disasters,” said Acting Comptroller of the Currency Rodney Hood. “I will continue to look for appropriate opportunities to calibrate regulatory requirements to be effective, not excessive, while ensuring the safety, soundness and fairness of the federal banking system.”
The Trump administration has pulled back on several climate initiatives in recent months, with the OCC and Federal Reserve pulling out of international efforts by financial institutions and regulators to address the issue. The Securities and Exchange Commission last week voted to end its defense to several court challenges of its climate disclosure rule.
