Climate Risks Push Banks Into a Race Against Their Regulators
- Firms struggle with how to add climate into risk models
- ‘Everybody’s talking about it, but we’re not there yet’
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Big banks know they’ve got limited time to figure out how to account for the growing risk of climate change -- before regulators do it for them.
A network of 54 central banks and industry supervisors formed in 2017 is looking for ways to develop a new framework for climate risk management in the financial sector. Many of the group’s members are also on the Basel Committee on Banking Supervision, which sets global capital requirements.