Climate Related Financial Risk
Tuesday, January 18, 2022 at 4:11PM
Banking Spectrum in Banking News

The Office of the Comptroller of the Currency released draft principles designed to support the identification and management of climate-related financial risks by banks with more than $100 billion in assets. The draft outlines the types of climate-related risks banks should be monitoring and call for firms’ managers to develop a framework to analyze their exposure to those risks through hypothetical scenarios. Earlier today, the Financial Stability Oversight Council voted to establish the Climate-related Financial Risk Committee (CFRC), which will identify priority areas for assessing and mitigating climate-related risks to the financial system, coordinate information sharing, aid in the development of common approaches and standards, and facilitate communication across FSOC members and interested parties.

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