ECB’s New Supervisor Warns Against Using Capital as Green Lever

  • Anneli Tuominen appointed to succeed Pentti Hakkarainen
  • EU is mulling using capital requirements to address climate

European Central Bank headquarters in Frankfurt.

Photographer: Martin Leissl/Bloomberg
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The newest member of the European Central Bank’s Supervisory Board says climate considerations shouldn’t play a role in deciding how much capital banks should hold against potential future losses.

Anneli Tuominen, who was named on Thursday to succeed Finnish countryman Pentti Hakkarainen, says she’s against using capital rebates as an incentive for green lending, as the European Union is considering. The EU is also mulling harsher requirements for lending to polluters.