.jpg){kind=avatar}
.jpg){kind=avatar}
The six largest banks in the U.S. have until the end of July to show the impact that climate change could have on their operations, according to details of a pilot program the Federal Reserve unveiled this week. Under the review, the institutions are to show the anticipated impact that events such as floods, wildfires, hurricanes, heat waves and droughts could have on their loan portfolios and commercial real estate holdings. A hypothetical scenario focuses on events in the Northeastern U.S.
“The Fed has narrow, but important, responsibilities regarding climate-related financial risks – to ensure that banks understand and manage their material risks, including the financial risks from climate change,” Fed Vice Chair for Supervision Michael S. Barr said. “The exercise we are launching today will advance the ability of supervisors and banks to analyze and manage emerging climate-related financial risks.”
unknownx500
