ECB Gets New Powers From EU Over Climate, Crypto Bank Risks

Europe’s top banking watchdog will become more powerful as European Union lawmakers expand its remit to include risks linked to climate change and the rise of digital assets.

As sweeping update of regulation detailed this week mandates the European Central Bank to monitor how lenders plan to transition to a net-zero carbon economy over the next three decades. The reform also puts it in charge of supervising bank-owned providers of crypto asset services.

The ECB gets those responsibilities after it built up credibility during the decade that it has been the EU’s main banking regulator. The institution has already been ...