Federal efforts to gauge how well large banks are prepared to handle climate change risks will differ from traditional stress tests in that they are not about capital, representatives from the Office of the Comptroller of the Currency and Federal Housing Finance Agency said Tuesday.
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Reporting component of the SEC proposal would place “undue burden” on farmers who provide raw products to the value chain, opponents say.
Acknowledging that the FDIC does not currently incorporate the financial risk of climate change into its supervisory program, Acting Chairman Martin Gruenberg said today the agency needs to “clearly communicate” what its intentions are as it begins to explore those risks.
The current environment of swiftly rising interest rates, combined with tighter financial conditions, greater market volatility and slowing global growth “could test many of the long-standing and growing vulnerabilities in the global financial system,” the Financial Stability Board said.
A new report released today by the Financial Stability Board encouraged regulatory authorities to expand the use of climate scenario analysis and stress tests for financial institutions, although it acknowledged that more data was needed to develop such policies.
Banks have managed weather-related events and risks well, but things are changing and regulators and banks of all sizes will need to adapt.
In a joint letter Thursday, seventeen Republican state attorneys general said they objected to the appointment of Yue Chen as the OCC’s chief climate risk officer,
The Federal Reserve today said that six of the nation’s largest banks will participate in a pilot climate scenario analysis exercise designed to enhance the ability of supervisors and firms to measure and manage climate-related financial risks.
ABA President and CEO Rob Nichols last week joined Texas Bankers Association Chairman Ford Sasser and CEO Chris Furlow on a listening tour through Texas to hear from bank leaders and discuss the critical role banks of all sizes play in supporting the state’s energy sector.