Archive

Banks' disproportionate lending to high-emitting sectors poses stability risks, ECB warns

Eurozone banks lend "disproportionately" to high-emitting sectors and thereby risk financial instability, the European Central Bank (ECB) has warned, as it called for a tougher strategy to tackle such risks that could include increased capital requirements.

ECB should consider nature risks in bond purchases and lending, Elderson says

The European Central Bank (ECB) should "broaden" its efforts to reduce climate risks in its lending and bond purchases to include nature risks - including in its €3 trillion ($3.3 trillion) public sector bond portfolio - according to a member of its executive board.

ECB set to fine banks 'turning a blind eye' to climate risk, Elderson says

Banks still failing to meet climate risk management expectations set by the European Central Bank (ECB) three years ago are on the verge of incurring daily fines until they redress shortcomings in their climate risk management.

What next for climate scenarios? Part two

How will the next generation of climate scenarios differ from the first, Michael Hurley asks

What next for climate scenarios?

As criticisms grow of the first climate scenario models, what does the next generation need to look like, Michael Hurley asks

'We are aware of the criticism': The NGFS on its next phase of scenarios

The Network for Greening the Financial System is developing short-term climate scenarios and increased detail on sectoral impacts in response to feedback, Jean Boissinot and Martina Spaggiari tell Michael Hurley

NGFS unveils 'short-term' climate scenarios for prudential stress testing

A group of central bankers has published a framework for modelling physical and transition climate-related risks over three-to-five years, to be used for prudential stress testing and to "enable financial actors to properly assess the resilience of the financial sector".

ECB's Lagarde talks up EU common issuance of green bonds

The ECB plots the 'winners and losers' of the transition

The central bank has alerted lenders and investors to the relative winners and losers in the transition - with fossil fuel companies set to take an immediate hit. Michael Hurley reports

ECB warns fossil-fuel-exposed banks they risk €21bn in annual losses by 2029

The European Central Bank (ECB) has delivered its starkest warning to-date of the damage a delayed transition to a net zero economy would inflict on the financial system.