The U.S. Bank Regulators Should Require Robust Climate Change Risk Measurements And Disclosures From Bank

U.S. Bank Regulators Should Require Robust Climate Change Risk Measurements And Disclosures From 

Banks can suffer significant losses due to climate[+]

 

I was pleased to hear that the Federal Reserve will run a pilot program next year requiring the United States most globally systemically important banks (GSIBs) to run climate change scenarios. This is a step in the right direction, since the safety and soundness of banks is critical to the development of our country. At the end of 2020, I wrote All U.S. Bank Regulators Should Require Banks To Incorporate Climate Change Risks into Their Risk Management Frameworks and Disclosures, precisely because banks can suffer significant financial losses from climate-change related physical and transition risks