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New York Wants Banks to Prioritize Climate Change Risks (1)

Oct. 29, 2020, 4:46 PMUpdated: Oct. 29, 2020, 6:03 PM

New York’s top financial regulator expects banks and other financial firms to include climate change in their operational and risk management plans under new guidance.

Banks, mortgage lenders and servicers, cryptocurrency firms, money transmitters, and others regulated by the New York Department of Financial Services should review how climate risks, such as sea-level rise or extreme weather events, could affect their operations and balance sheets, according to the guidance issued Thursday.

“Physical risks can cause destruction of properties and assets, business disruption, supply chain disruption, increase in costs to recover from disasters, reduction in revenue, and migration. In turn, these ...