ECB lays foundations for climate risk capital charge
New guide will influence capital management, but pillar two charges likely to await EBA report
The European Central Bank (ECB) has started down the path that could lead to climate risk becoming an integral part of capital management, experts say – although the regulator is likely to delay capital charges pending a further report from the European Banking Authority (EBA).
The ECB launched a public consultation on a draft guide on climate-related and environmental risks on May 20, with the potential to integrate these risks into the supervisory framework as early as 2021.
“This is not
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