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Janet Yellen Says Higher Bank Capital Rules for Climate Risk Are ‘Premature’

  • Treasury secretary says regulators must evaluate risks first
  • Says U.S. not very far behind global peers on stress tests
Janet Yellen
Janet YellenPhotographer: Eric Lee/Bloomberg

Treasury Secretary Janet Yellen said it’s too early to contemplate adjusting capital requirements for U.S. banks based on how much risk they face from climate change.

“It’s just premature at this point to talk about raising capital requirements,” Yellen said Wednesday in an interview with Bloomberg News. Before that could happen, she said, “it’s really important that regulators do the groundwork that’s necessary for them to evaluate risks to individual firms.”