Fed’s climate stress test whips up storm for banks
Long-awaited US climate risk exercise puts tough pressure on banks’ data and models
Compared with regulators in Europe and Asia, the Federal Reserve has arrived late to the party when it comes to stress-testing banks’ ability to manage climate change risks. But the US regulator seems intent on making up for lost time, with a debut climate scenario analysis (CSA) exercise that in certain respects goes beyond the tests previously used in jurisdictions like France, the UK or Hong Kong.
The scope and scale of the test leaves the six largest US banks scrambling to staff up and
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