In a comment letter on the FRB's "Principles for Climate-Related Financial Risk Management for Large Financial Institutions," the American Bankers Association supported efforts to create "a high-level guide for the largest institutions," but raised concerns on both substance and process.
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The OCC, the FDIC and the Federal Reserve Board finalized guidance for senior management of large banks on managing exposures to climate-related financial risks.
Comments on the Federal Reserve Board's draft "Principles for Climate-Related Financial Risk Management for Large Financial Institutions" are due by February 6, 2023.
The Congressional Research Service provided an overview of "selected banking-related issues that may attract congressional interest in the 117th Congress."
Federal Reserve Board Governor Lael Brainard warned that "financial market participants that do not put in place frameworks to assess and address climate-related risks could face significant losses on climate-sensitive assets caused by environmental shifts, by a disorderly transition, or both."