Featured Product

    MAS Plans to Include Climate-Related Risks into Annual Stress Tests

    February 04, 2020

    MAS is working toward incorporating a broader range of climate change-related risks in thematic scenarios as part of a future industry-wide stress test. This was announced, by Ong Ye Kung who is a minister in Singapore, in response to a Parliamentary Question on the plans of MAS for including climate change-related risks in the annual industry-wide stress test. MAS is also a founding member of the global Network for Greening the Financial System, which develops best practices for a more sustainable financial industry. Locally, MAS will be issuing a consultation paper on Environmental Risk Management guidelines for various financial institutions in the first quarter of this year.

    MAS has already started to stress test for risks related to climate change. However, the methodologies for stress testing climate change-related risk are still at a nascent stage. BoE, as mentioned by an MP Mr. Louis Ng Kok Kwang, has acknowledged that central banks and the financial sector are still building capacity to model financial risks arising from climate change. IMF too is working to improve its climate change-related stress scenarios. MAS takes climate change-related risks seriously as a financial supervisor. Financial institutions are potentially exposed to such risks because they provide financing and insurance services to businesses that can be impacted by a wide range of climate change-related events, including natural catastrophes. There are also risks arising from changes to public policies, technologies, or consumer preferences that can impact businesses significantly. Climate change is, therefore, increasingly relevant to financial institutions, both because the risks will be on their balance sheets and because they will play a role in enabling their customers and the economy at large to make a transition in Singapore as well as abroad.

     

    Keywords: Asia Pacific, Singapore, Banking, Insurance, Climate Change Risk, Stress Testing, NGFS, ESG, MAS

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News
    News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News
    News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News
    News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267