The Federal Reserve, FDIC and Office of the Comptroller of the Currency today announced they have withdrawn an interagency set of principles for climate risk management at large banks.
The Principles for Climate-Related Financial Risk Management for Large Financial Institutions were issued in 2023 to support the identification and management of climate risks by financial institutions with more than $100 billion in assets. In a joint statement, the agencies said they do not believe the principles are necessary because their existing safety and soundness standards “require all supervised institutions to have effective risk management commensurate with their size, complexity and activities.”
“In addition, all supervised institutions are expected to consider and appropriately address all material financial risks and should be resilient to a range of risks, including emerging risks,” they said.
