BOE Unveils Sweeping New Climate Test of Banks and Insurers
- Firms will test themselves against three climate scenarios
- Regulators globally are exploring ways to measure climate risk
Photographer: Peter Macdiarmid/Getty Images
This article is for subscribers only.
The Bank of England started a major new stress test of the country’s biggest banks and insurers to judge how resilient they are to climate change.
The assessment, delayed last year because of the pandemic, requires HSBC Holdings Plc, Barclays Plc and other lenders to scrutinize the impact of global warming on everything from real estate to corporate loans. Aviva Plc and Phoenix Group Holdings Plc are among insurers also covered by the test.