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US banks seek to open vendors’ black box on green data

Inaugural Fed climate scenario analysis flags lack of transparency around third-party models

Black box green message
Credit: Risk.net montage

The US Federal Reserve and the country’s largest banks have had their differences, especially in recent months. But the regulator’s first ever climate scenario analysis has revealed a common cause: frustration over the climate risk models provided by third party vendors.

The analysis was launched in January 2023, with the findings published in May this year. Among its conclusions from the exercise

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