U.S. Bank Regulators Drop Climate Risk Guidance
Amid a policy shift, U.S. banking regulators are scrapping guidance that aimed to help large banks identify climate-related financial risks.
The Federal Reserve Board, the Federal Deposit Insurance Corp. (FDIC), and the Office of the Comptroller of the Currency had adopted principles designed to address weaknesses in how banks deal with the risks posed by climate change.
These principles addressed both physical and transition risks that could impact the soundness of banks with over $100 billion in assets.
However, in a joint release, the regulators announced that they are retracting the guidance.
The guidance applied to banks with over $100 billion in assets.
Author's summary: U.S. bank regulators drop climate risk guidance amid policy shift.