By Pete Schroeder
WASHINGTON (Reuters) -One of the top U.S. bank regulators suggested Thursday that banks should make assessing financial risks stemming from climate change an integral part of their work.
The Office of the Comptroller of the Currency said it was soliciting feedback on draft principles for bank supervisors, with a specific eye on firms with over $100 billion in assets. The draft laid out a sweeping vision for how banks should be integrating climate change risk into nearly every aspect of their business, and marks the most significant step to date by regulators under the Biden administration to push banks to consider climate risks.
The draft principles said a bank’s senior leadership should ensure the firm is adequately gauging climate risk on its portfolio, and what role those exposures play in its overall business strategy. The OCC said it was considering further guidance detailing specifically the responsibilities of senior management and bank boards of directors in assessing climate risk.
In a separate statement, the Federal Reserve said it would also be reviewing the feedback the OCC receives, and will be working on a consistent set of standards for bank supervisors regarding climate risk management.
(Reporting by Pete Schroeder)
