ECB Threatens 20 Banks With Fines After Climate-Risk Warning
- Banks are under pressure to step up climate-risk management
- ECB warned laggard banks it would impose penalty payments
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The European Central Bank has warned about 20 lenders that it will impose fines unless they address shortcomings in their management of climate risk, according to people familiar with the matter.
In letters sent this month and last, the ECB has given the banks individual deadlines, such as the end of March, to fix the issues it identified, the people said, asking not to be named discussing private deliberations. The so-called periodic penalty payments mark an escalation as the ECB’s patience with laggards wears thin, they said.