PRA Publishes Summary of Third Meeting of Climate Financial Risk Forum
The Joint Climate Risk Forum of FCA and PRA held its third meeting in November 2019. At the meeting, the working group chairs presented the draft practical guidance, recommendations, and progress to date. The members discussed the outputs, noting the importance of how to strike the right balance around the granularity or "prescriptiveness" of the recommendations and how to consider challenges related to data integrity. The members also discussed the form of the outputs and the timeline for publishing them, with focus on getting wider industry input on the draft guidance and recommendations in early 2020. Members agreed that there would be an industry engagement event in January and the Forum will aim to publish the final version of these outputs in Spring 2020.
The forum agreed to undertake a second year of work and discussed initial ideas for what future work it may undertake beyond Spring 2020. The next meeting will take place in the first quarter of 2020 and will focus on finalizing the outputs for publication and determining the next steps.
The objective of CFRF is to build capacity and share best practices across financial regulators and industry to advance financial-sector responses to the financial risks from climate change. It brings together senior representatives from across the financial sector, including banks, insurers, and asset managers. The forum is chaired by Sarah Breeden (Executive Director of International Banks Supervision, PRA) and Christopher Woolard (Executive Director of Strategy and Competition, FCA). Since its inception in March 2019, CFRF has set up four technical working groups on disclosure, scenario analysis, risk management, and innovation. Each working group is chaired by a CFRF member and supported by an external secretariat. Each working group has planned the approach it proposes to take and the outputs it will deliver in terms of practical guidance and best-practice material.
Related Links
Keywords: Europe, UK, Banking, Insurance, Securities, Climate Change Risk, Climate Financial Risk Forum, ESG, CFRF, FCA, PRA
Previous Article
EU Reaches Political Agreement on Sustainable Investment TaxonomyRelated Articles
BIS Paper Studies Impact of Fintech Lending on Small Businesses in US
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
EBA Launches EU-Wide Transparency Exercise in 2022
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
EC Rule Lists Advanced Economies for Market Risk Capital Calculations
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
