Banks Are ‘Long Way Off’ From ECB’s Climate Risk Expectations

June 16, 2021, 1:41 PM

European lenders are failing to meet their top regulator’s standards for adapting to climate change, suggesting they may face higher capital requirements if they don’t make progress.

“The great majority of European banks are not even close to where they should be - and they know it,” said European Central Bank Executive Board member Frank Elderson. Nine out of ten banks have practices that are only partially or not at all aligned with the ECB’s expectations, he said.

The ECB is pushing banks to understand and manage the risks resulting from rising water levels, droughts and the possibility that ...

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