Basel Committee issues consultation on climate-related financial risks

The Basel Committee on Banking Supervision (BCBS) has announced the launch of a public consultation on proposals for the effective management and supervision of climate-related financial risks.

The move follows the publication of a series of analytical reports earlier this year.

The Committee, which is the primary global standard setter for the prudential regulation of banks, said that it is taking a “holistic” approach to addressing climate change related financial risks to the global banking system.

This includes the assessment and consideration of disclosure, supervisory, and regulatory measures.

Its 45 members comprise central banks and bank supervisors from 28 jurisdictions.

Through this public consultation, the Committee seeks to "promote a principles-based approach to improving both banks' risk management and supervisors' practices related to climate-related financial risks."

The principles also seek to achieve a balance in providing a common baseline for internationally active banks and supervisors, while retaining sufficient flexibility given the evolving practices in this area.

"The Committee intends to monitor implementation across member jurisdictions to promote a common understanding of expectations, support the development of harmonised practices and facilitate implementation of the principles as soon as possible," it said in a statement.

The deadline for comments for the consultation is 16 February 2022.

    Share Story:

Recent Stories


Data trust in the AI era: Building customer confidence through responsible banking
In the second episode of FStech’s three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech examines the critical relationship between data trust, transparency, and responsible AI implementation in financial services.

Banking's GenAI evolution: Beyond the hype, building the future
In the first episode of a three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech explores how financial institutions can navigate the transformative potential of Generative AI while building lasting foundations for innovation.

Beyond compliance: Transforming document management into a strategic advantage for financial institutions
In this exclusive fireside chat, John Rockliffe, Pre-Sales Manager at d.velop, discusses the findings of Adapting to a Digital-Native World: Financial Services Document Management Beyond 2025 and explores how FSIs can turn document workflows into a competitive advantage.

Sanctions evasion in an era of conflict: Optimising KYC and monitoring to tackle crime
The ongoing war in Ukraine and resulting sanctions on Russia, and the continuing geopolitical tensions have resulted in an unprecedented increase in parties added to sanctions lists.