WASHINGTON, September 15 (Hfrance.fr) - US banking regulators are working on new climate risk management guidelines for large lenders, a senior official said on Wednesday, in another sign of efforts to incorporate risks posed by rising temperatures into financial rules.
Acting Currency Comptroller Michael Hsu said his agency is working on the guidance in collaboration with other banking regulators to help lenders manage the physical and transitional risks climate change poses to the financial system .
Climate change could wreak havoc on the financial system due to threats such as water level risethe sea, along with carbon-neutral policies and technologies aimed at slowing global warming, could destroy billions of dollars in assets, risk experts say.
" Climate change poses an existential risk to society and the associated financial risks pose a risk to the safety and soundness of banks. To maintain confidence, banks and regulators must start taking risks. measures now "Hsu said during a speech in Washington.
The Federal Reserve has asked lenders to provide information on the measures that they take to mitigate climate change risks to their balance sheets, Hfrance.fr reported in May.
Hsu's comments are the first to suggest, however, that regulators are working on more extensive guidance that couldaffect a much wider nation of lenders and the companies with which they do business. While advice does not have the same legal weight as a formal rule, it is often as effective and can be implemented much faster, lawyers say. Report by Michelle Price ; Editing by Cynthia Osterman
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