Featured Product

    BNM Increases Focus on Addressing Climate Risks in Financial Sector

    September 15, 2020

    BNM's Joint Committee on Climate Change, also known as JC3) met to discuss the progress in addressing climate change issues in the financial sector and to set priorities for the next twelve months. As part of the priorities, JC3 members committed to work toward wider adoption of the recommendations by the Task Force on Climate-related Financial Disclosures (TCFD) and to advance concrete actions to pave the way for adoption of disclosure standards by the industry in the immediate future. JC3 members also agreed to take up, as part of its future work plan, the development of measures to help bridge gaps in climate and environment risk-related information needed to support risk management and product solutioning by financial service providers.

    The four JC3 sub-committees are focused on risk management, governance and disclosure, product and innovation, and engagement and capacity building. The COVID-19 pandemic has brought to the fore the need to build resilience against climate and environmental risk events. In the backdrop of such ongoing developments, the JC3 meeting discussed the completed deliverables of its sub-committees during the year, along with the following future initiatives:

    • BNM expects to publish, post consultation, a revised document on climate change and principles-based taxonomy as well as an additional guidance for implementation in early 2021. In parallel, 12 financial institutions that are members of the JC3 will participate in a pilot implementation of the taxonomy, which is scheduled to commence this month. 
    • JC3 members provided input on the development of reference documents on climate risk management and scenario analysis, which will be undertaken over the coming months to further strengthen risk management practices in the financial sector.
    • Members discussed the results of an assessment conducted on climate-related disclosure practices across a sample of financial institutions in Malaysia, based on the recommendations of TCFD. Insights from the assessment will inform planned work on developing an application guide on climate-related disclosures, which will commence shortly as part of initiatives to improve the quality of disclosures.
    • Financial participants noted paucity and fragmentation of information, gaps in technology knowledge, coordination issues, and low visibility on national strategies as the key challenges in addressing climate change risks. Initial views were shared on measures to address these market gaps and these measures will be further developed by the Product and Innovation sub-committee.
    • Members agreed to further engage with institutional investors to identify opportunities in the development of products and services to address climate change and discussed plans to develop a more structured technical capacity building program for financial industry participants.

     

    Related Link: Press Release

     

    Keywords: Asia Pacific, Malaysia, Banking, Climate Change Risk, Sustainable Finance, Disclosures, Taxonomy, Stress Testing, BNM

    Featured Experts
    Related Articles
    News

    EC Regulation Sets Out Standards for Reporting and Disclosure of MREL

    EC published the Implementing Regulation 2021/763 that lays down implementing technical standards for supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities (MREL).

    May 12, 2021 WebPage Regulatory News
    News

    EBA Report Notes Loan Origination Should Remain in Supervisory Focus

    EBA published a report that examines the convergence of prudential supervisory practices in 2020 and offers conclusions of the EBA college monitoring activity.

    May 12, 2021 WebPage Regulatory News
    News

    APRA Decides to Standardize Submission Date for Quarterly Reporting

    APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.

    May 11, 2021 WebPage Regulatory News
    News

    ECB Working Group Publishes Recommendations on EURIBOR Fallbacks

    The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).

    May 11, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Supporting Documentation for Reporting by Banks

    Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.

    May 11, 2021 WebPage Regulatory News
    News

    EBA Publishes Phase 1 of Reporting Framework 3.1

    EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).

    May 10, 2021 WebPage Regulatory News
    News

    IOSCO Sees Support for Mandatory Sustainability Reporting

    The Sustainable Finance Taskforce of IOSCO held two roundtables, with global stakeholders, on the IOSCO priorities to enhance the reliability, comparability, and consistency of sustainability-related disclosures and to collect views on the practical implementation of a global system architecture for these disclosures.

    May 10, 2021 WebPage Regulatory News
    News

    APRA to Finalize Capital Adequacy Standard Revisions by January 2022

    Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA

    May 10, 2021 WebPage Regulatory News
    News

    ESMA Issues Guidelines on Outsourcing to Cloud Service Providers

    ESMA published the final guidelines on outsourcing to cloud service providers.

    May 10, 2021 WebPage Regulatory News
    News

    EBA Publishes Data on Deposit Guarantee Schemes

    EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.

    May 10, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6967