ESG Telegraph
  • Home
  • Latest News
  • Environment
  • Companies
  • Investors
  • Governance
  • Markets
  • Social
  • Regulators
  • Sustainable Finance
Featured Posts
    • Latest News
    The challenges for Latin America’s new left
    • August 7, 2022
    • Latest News
    Disengaged, indifferent, deluded? Why young workers have an image problem
    • August 7, 2022
    • Latest News
    Colombia ushers in its most leftwing president
    • August 7, 2022
    • Companies
    Merck defends tax approach against senator’s claims of avoidance
    • August 7, 2022
    • Latest News
    The west’s phantom energy sanctions fuel Russia’s war machine
    • August 7, 2022
Featured Categories
Belarussia
View Posts
Companies
View Posts
Energy
View Posts
Environment
View Posts
Food
View Posts
Governance
View Posts
Investors
View Posts
Latest News
View Posts
Markets
View Posts
Potash
View Posts
Regulators
View Posts
Russsia
View Posts
Social
View Posts
Supply Chain
View Posts
Sustainable Finance
View Posts
ESG Telegraph ESG Telegraph
7K
9K
4K
1K
ESG Telegraph ESG Telegraph
  • Home
  • Latest News
  • Environment
  • Companies
  • Investors
  • Governance
  • Markets
  • Social
  • Regulators
  • Sustainable Finance
  • Sustainable Finance

ECB Kicks Off Climate Risk Stress Test for Banks

  • January 27, 2022
  • Staff
Total
0
Shares
0
0
0

The European Central Bank (ECB) announced today the launch of a supervisory climate risk stress test, aiming to assess banks’ preparedness for dealing with financial and economic shocks stemming from climate risk.

Described by the ECB as “a learning exercise for banks and supervisors alike,” the test is designed to identify vulnerabilities, best practices and challenges banks face when managing climate-related risk. The exercise will be conducted during the first half of 2022, with aggregate results expected to be published in July.

The launch of the new stress test follows the release last November by the ECB of the results of a comprehensive review into the European banking sector’s management of climate and environmental (C&E) risks, revealing major shortfalls in preparedness, with no banks meeting expectations, and many lacking sufficient improvement plans.

According to the ECB, the new stress test will target specific asset classes exposed to climate risk rather than banks’ overall balance sheets, with a focus on exposures and income sources that are most vulnerable to climate-related risk. The test will use scenarios based on scenarios prepared by Network of Central Banks and Supervisors for Greening the Financial System (NGFS), reflecting possible future climate policies, and will assess physical risks, including heat, drought and floods, and short and long-term risks stemming from the transition to a greener economy.

While the results of the stress test will not have a direct capital impact on banks, the ECB said that they will qualitatively inform the Supervisory Review and Evaluation Process (SREP), potentially indirectly impact Pillar 2 requirements through the SREP process.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
You May Also Like
Read More
  • Sustainable Finance

Standard Chartered Hires Google Sustainability Leader Kerry Constabile to Head Net Zero & Sustainability Strategy Teams

  • Staff
  • August 5, 2022
Read More
  • Sustainable Finance

Singapore Raises S$2.4 Billion in Inaugural Green Bond Offering

  • Staff
  • August 5, 2022
Read More
  • Sustainable Finance

Citi Launches Sustainable Deposit Solution in Asia Pacific

  • Staff
  • August 4, 2022
Read More
  • Sustainable Finance

Carlyle Launches Decarbonization-Linked Finance Program for Private Credit Market

  • Staff
  • August 2, 2022
Read More
  • Sustainable Finance

Singapore to Launch Inaugural Green Bond this Week

  • Staff
  • August 2, 2022
Read More
  • Sustainable Finance

GM Issues its First Green Bond to Power Clean Transportation Investments

  • Staff
  • August 1, 2022
Read More
  • Sustainable Finance

Sustainable Bond Volumes Outperform Broader Market to Reach Record Share: Moody’s

  • Staff
  • July 29, 2022
Read More
  • Sustainable Finance

OPG Issues $300M “Nuclear Green Bond”

  • Staff
  • July 19, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Featured Posts
  • 1
    The challenges for Latin America’s new left
    • August 7, 2022
  • 2
    Disengaged, indifferent, deluded? Why young workers have an image problem
    • August 7, 2022
  • 3
    Colombia ushers in its most leftwing president
    • August 7, 2022
  • 4
    Merck defends tax approach against senator’s claims of avoidance
    • August 7, 2022
  • 5
    The west’s phantom energy sanctions fuel Russia’s war machine
    • August 7, 2022
Recent Posts
  • US banks tout fossil fuel credentials after Republican ESG backlash
    • August 7, 2022
  • Bolsonaro bets improving Brazilian economy will be election boon
    • August 7, 2022
  • The end of the warehouse bubble
    • August 7, 2022

Sign Up for Our Newsletters

Subscribe now to our newsletter

ESG Telegraph
  • Home
  • Privacy Policy
  • Guest Post
  • Contact

Input your search keywords and press Enter.