U.S. Bank Regulators Drop Climate Risk Guidance
Amid a policy shift, U.S. banking regulators are scrapping guidance aimed at helping 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 to address weaknesses in how banks deal with climate change risks.
These risks include physical and transition risks that could impact bank soundness, and the guidance applied to banks with over $100 billion in assets.
The regulators announced that they are retracting the guidance in a joint release.
Authors summary: Regulators scrap climate risk guidance for large banks.