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WASHINGTON (Reuters) - U.S. regulators will “eventually” have to factor climate change risks into bank capital rules, but it is still too soon to say when that would become necessary, a top official told Reuters.
FILE PHOTO: Students attend a protest rally to call for urgent action to slow the pace of climate change, in Los Angeles, California, U.S., March 15, 2019. REUTERS/Lucy Nicholson/File Photo/File Photo
Acting Comptroller of the Currency Michael Hsu said in an interview that regulators were still exploring the best way to incorporate climate change risks such as extreme weather events or major policy shifts into bank supervision and oversight.
By Reuters Staff
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LONDON, June 1 (Reuters) - Bank of England Governor Andrew Bailey said on Tuesday the British central bank wants lenders and insurers to be more aware of the risks posed by climate change, but that it was not financial regulators’ role to enforce change.
Central banks around the world are increasingly focused on the costs of climate change as they try to steer a path for their economies and the financial systems through the transition to net zero carbon emissions as well as extreme weather events.
“The biggest component of the journey to net-zero rests not with central banks, but with government, through the delivery of sector-level climate policy pathways. Without these the real economy cannot adjust effectively,” Bailey said in a speech to the Reuters Responsible Business 2021 conference.