Featured Product

    BoE to Launch Climate Biennial Exploratory Scenario Exercise in June

    November 13, 2020

    BoE announced plans to launch the Climate Biennial Exploratory Scenario (CBES) in June 2021, with the publication of scenarios for this exercise. In December 2020, BoE will inform participants about the high-level approach for the CBES in a number of key areas, including counterparty exposure data. It will also release a provisional set of scenario variables to be included in the exercise. BoE plans to release a set of draft data templates as well as a draft qualitative questionnaire for feedback from participants in February 2021, with the BoE expecting to release a finalized set of data templates and qualitative questionnaire. in April 2021. End of December 2020 will be the balance-sheet cut-off date for the exercise, with the participants' initial submissions due by the end of September 2021.

    These decisions reflect feedback that BoE received following the publication of its December 2019 discussion paper on design of the 2021 biennial exploratory scenario on the financial risks from climate changeIn addition to the Society of Lloyd’s (10 selected Managing Agents), the following institutions are being invited to take part in this exercise:

    Large UK banks and building societies

    Large UK life insurers

    Large UK general insurers

    Barclays

    Aviva (Group)

    Aviva (Group)

    Lloyds Banking Group

    Legal & General (Group)

    Direct Line (Group)

    HSBC

    M&G (Group)

    RSA (Group)

    Royal Bank of Scotland

    Phoenix (Group)

    AXA (UK entity only)

    Santander UK

    Scottish Widows (Group)

    Allianz (UK entity only)

    Standard Chartered


    AIG (UK entity only)

    Nationwide Building Society



     

    BoE will use the 2021 biennial exploratory scenario to explore the financial risks posed by climate change. The exercise will test the resilience of the current business models of the largest banks, insurers, and the financial system to climate related risks and, therefore, the scale of adjustment that will need to be undertaken in coming decades for the system to remain resilient. In December 2021, BoE plans to announce the decision on whether to run a second round of the exercise. In the event of a second round, BoE will publish results at the end of the first quarter of 2022. 

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance, Stress Testing, ESG, CBES, Climate Biennial Exploratory Scenario, Climate Change Risk, Implementation Timeline, BoE

    Featured Experts
    Related Articles
    News

    APRA Finalizes Reporting Standard for Operational Risk Requirements

    APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.

    March 03, 2021 WebPage Regulatory News
    News

    EBA Consults on Pillar 3 Disclosure Standards for ESG Risks Under CRR

    EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).

    March 01, 2021 WebPage Regulatory News
    News

    ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting

    ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting

    March 01, 2021 WebPage Regulatory News
    News

    EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package

    EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.

    February 26, 2021 WebPage Regulatory News
    News

    EBA Publishes Single Rulebook Q&A Updates in February 2021

    The EBA Single Rulebook question and answer (Q&A) tool updates for this month include answers to ten questions.

    February 26, 2021 WebPage Regulatory News
    News

    ESMA Releases Schema and Instructions for Securitization Reporting

    ESMA updated the set of questions and answers (Q&A), along with the reporting instructions and an XML schema for the templates set out in the technical standards on disclosure requirements, under the Securitization Regulation.

    February 26, 2021 WebPage Regulatory News
    News

    EU Rule Amends Requirement for European Single Electronic Format

    EU published Regulation 2021/337, which amends the Transparency Directive (2004/109/EC), regarding the use of the single electronic reporting format for annual financial reports.

    February 26, 2021 WebPage Regulatory News
    News

    EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway

    The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.

    February 25, 2021 WebPage Regulatory News
    News

    PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks

    In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.

    February 25, 2021 WebPage Regulatory News
    News

    FSB Sets Out Work Priorities for 2021

    In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.

    February 25, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6637