ECB Test Reveals Banks Plagued by Climate ‘Data Gap,’ Enria Says

The European Central Bank’s landmark climate stress test will reveal that lenders are still poorly equipped to judge how significantly global warming will hit their balance sheets.

“Banks made an effort, relying on proxies and we showed that we can measure and manage more pro-actively climate risk by relying on different data sources,” said Andrea Enria, who leads the ECB’s supervisory board. “But still, I think one of the main issues that we need to put up front in the discussions with the banks is that they need to fill the data gap.”

The ECB will publish results of ...