Featured Product

    DNB Consults on Integration of Climate Risk Considerations for Banks

    November 27, 2019

    DNB launched a consultation on the good practices for integration of climate-related risk considerations into risk management of banks. The consultation, which ends on January 17, 2020, seeks views on whether the practices are sufficiently clear and whether they provide banks with practical guidance for further integration of climate-related risks into their governance, risk management, and disclosures. The document also includes a set of questions and answers on the DNB interpretation of current regulations in relation to the treatment of climate-related risks. The final version of the good practices will be published in the first quarter of 2020.

    The document first demonstrates how climate change can be a driver of conventional risk types, such as credit, market, and operational risks. It then explains the applicable legislation and regulations. Incorporation of climate risks in the risk management of banks is in line with the Capital Requirements Directive (CRD) IV. Article 74 of CRD IV stipulates that banks must have in place robust governance arrangements, including effective processes to identify, manage, monitor, and report the risks to which they are or might be exposed to. Given the potential impact of climate-related risks on banks' balance sheets, DNB expects banks to take climate-related risks into account in their risk management. They could do this by, among others, identifying the impact of these risks on their overall risk profile.

    The proposed good practices provide non-binding guidance on how banks can organize their processes, procedures, and policies to manage the climate-related risks of their activities. This non-binding guidance is based on observed or envisaged practices that reflect an appropriate application of the applicable legislation and regulation to which this good practice document pertains. By adopting the good practices in a manner proportionate to their nature and scale, banks will become more resilient to the financial risks from climate change. These good practices are based on principal findings from the DNB analysis of the climate risk self-assessments submitted by Dutch less significant institutions and other market observations made through the work of DNB in this area.


    Related Links

    Comment Due Date: January 17, 2020

    Keywords: Europe, Netherlands, Banking, CRD IV, Operational Risk, Market Risk, Climate Related Risks, Credit Risk, Guidance, ESG, Sustainable Finance, Disclosures, DNB

    Featured Experts
    Related Articles
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    News

    HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets

    The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.

    January 12, 2022 WebPage Regulatory News
    News

    FCA Registers Securitization Repositories; PRA Issues 2022 Priorities

    The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.

    January 12, 2022 WebPage Regulatory News
    News

    EC Regulation Sets Out Methods for Measuring K-Factors Under IFR

    The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.

    January 11, 2022 WebPage Regulatory News
    News

    BIS Studies How Platform Models Impact Financial Stability & Inclusion

    The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.

    January 10, 2022 WebPage Regulatory News
    News

    ESAs Publish List of Financial Conglomerates for 2021

    The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.

    January 07, 2022 WebPage Regulatory News
    News

    APRA Licenses Two More Banks, Reduces Committed Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.

    January 07, 2022 WebPage Regulatory News
    News

    EU Issues SII Corrigendum; EIOPA Assesses SII Reporting Exemptions

    EU published, in the Official Journal of the European Union, a corrigendum to the Delegated Regulation 2015/35, which supplements Solvency II Directive (2009/138/EC).

    January 06, 2022 WebPage Regulatory News
    News

    EBA Opines on Impact of De-Risking and Associated AML/CFT Challenges

    The European Banking Authority (EBA) published an Opinion on the scale and impact of de-risking in European Union and the steps that competent authorities should take to tackle unwarranted de-risking.

    January 05, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7860