The Federal Reserve disclosed results from an assessment of how big US banks would be impacted by climate change , an exercise that created new political tensions for the central bank.) found that 20-50% of their commercial and residential real estate loans in the Northeast would be impacted by the most severe climate shock— defined as having no insurance coverage for a once-in-200-year event under events including hurricanes, flooding and wildfires.
"Policies to address climate change are the business of elected officials and those agencies that they have charged with this responsibility" he said during a speech last month at Stanford University. "The Fed has received no such charge.""We are not, nor do we seek to be, climate policymakers," he said during his speech, pledging to avoid "mission creep."That hasn’t stopped lawmakers and other policy makers from criticizing Powell on this subject.
And Republicans have also repeatedly come down on Powell for considering rules that would test banks' ability to withstand climate-related scenarios, arguing it falls out of the scope of the Fed's authority.Last May, Fed Governor Chris Waller said he doesn’t believe climate change poses a serious risk to the US financial system even as the central bank tested the resilience of banks under different climate scenarios.
Bank’s estimates of climate-adjusted credit risk parameters, such as probability of default, showed significant differences in impact across sectors, regions, and counterparties.Drawing on lessons learned from the exercise, the Fed said it will continue to engage with participating banks regarding their capacity to measure and manage climate-related financial risks.
Source: Energy Industry News (energyindustrynews.net)
Climate Change Bank Of America The Federal Reserve Climate Policy Climate Risks Jpmorgan Chase Climate Analysis Sheldon Whitehouse Financial System Morgan Stanley Goldman Sachs
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: SaltWire Network - 🏆 45. / 63 Read more »
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Source: BNNBloomberg - 🏆 83. / 50 Read more »
Source: YahooFinanceCA - 🏆 47. / 63 Read more »