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ECB: Top 41 Banks Would Suffer Credit And Market Losses Of At Least EU70B From Higher Carbon Prices, Floods, Droughts
- ECB: Top 41 Banks Would Suffer Credit And Market Losses Of At Least EU70B From Higher Carbon Prices, Floods, Droughts
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- Only 20% Of Euro Zone Banks Consider Climate Risk When Granting Loans
- Around 60% Of EZ Banks Do Not Yet Have A Framework For Stress-Testing Climate Risk
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ECB stress test shows most banks don’t include climate risk in their credit models
The results of the European Central Bank’s first climate risk stress test show that most banks do not sufficiently incorporate climate risk into their stress-testing frameworks and internal models. In a report published Friday, the ECB said the findings reaffirm the view that banks must sharpen their focus on climate risk. “Euro area banks must urgently step up efforts to measure and manage climate risk, closing the current data gaps and adopting good practices that are already present in the sector,” Andrea Enria, chair of the ECB’s supervisory board, said in a statement. A total of 104 banks participated in ... (full story)