US banks have come up against data gaps and modelling challenges during an exploratory pilot climate scenario analysis exercise.
The analysis was carried out to help six of America's top banks understand the resiliency of their business models to climate-related financial risks.
The pilot, conducted by the Federal Reserve and the Bank of America; Citigroup; Goldman Sachs; JPMorgan Chase; Morgan Stanley; and Wells Fargo, found that these issues occur when estimating the financial impacts of highly complex and uncertain risks over various time horizons.
The Federal Reserve said that as the exercise was exploratory in nature, it does not have any capital consequences.
It went on to say that after learning lessons from the exercise, it will continue to engage with participating banks regarding their capacity to measure and manage climate-related financial risks.
Latest News
-
UK banks' transition plans 'not fit for purpose', says Reclaim Finance
-
Google Wallet launches digital ID services in the UK and US
-
Leeds Building Society revamps climate data with Experian partnership
-
Spanish competition authority clears BBVA's €13bn Sabadell bid with conditions
-
UK sets out new rules for crypto as it aligns with US on approach
-
BNP Paribas boosts operational resilience with IBM cloud partnership extension
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.
Achieving operational resilience in the financial sector: Navigating DORA with confidence
Operational resilience has become crucial for financial institutions navigating today's digital landscape riddled with cyber risks and challenges. The EU's Digital Operational Resilience Act (DORA) provides a harmonised framework to address these complexities, but there are key factors that financial institutions must ensure they consider.
Legacy isn’t the enemy: what FSIs can do to keep their systems up and running
In this webinar we will examine some of the steps FSIs have already taken to rigorously monitor and test systems – both manually and with AI-powered automation – while satisfying the concerns of regulators and customers.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories