EBA faces backlash over ‘green asset ratio’
Bankers reject proposed climate risk measure as flawed and even ‘dangerous’
Making European lenders disclose the amount of ‘green assets’ they hold will reveal little about the climate risks they are exposed to, and could muddle the existing regulatory framework for measuring risk and capital adequacy, banks say.
A proposal released by the European Banking Authority (EBA) on March 1 would require large financial institutions to publish a ‘green asset ratio’ (GAR) as
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