Bank of Russia to Spur Green Shift With Banking Regulations

The Bank of Russia plans to spur financial institutions and companies through banking regulation to take into account climate risks, Governor Elvira Nabiullina said Friday.

The regulator is considering differentiated criteria for banks depending on exposure to climate-related risks, she told an industry conference in Sochi. Criteria will be based on stress tests conducted by the Bank of Russia, she said, without elaborating.

“We used to have a principal of neutrality, not taking into consideration if it’s green or not,” she said. “We will not fall behind in this. We need to tune those regulatory parameters and it isn’t ...