Featured Product

    FINMA Sets Out Guidance on Climate-Related Financial Risk Management

    The Swiss Financial Market Supervisory Authority (FINMA) published guidance on developments in the area of climate-related financial risk management.

    The guidance aims to make banks and insurance companies more aware of climate-related financial risks. The climate risks pose significant challenges for financial institutions and supervisory authorities and are likely to materialize sooner or later. The current law states that financial institutions are obliged to record their main climate-related financial risks as part of risk management and to manage them appropriately and disclose them. Through this guidance, FINMA draws attention to relevant international developments in the area of climate-related financial risk management and reaffirms its expectation that supervised institutions will establish climate risk management that is adequate and appropriate to their risk profile. FINMA also expects the supervised financial institutions to proactively address the recommendations and assistance provided by international bodies and market best practices, and to further develop their instruments and processes.

    FINMA has been integrating climate-related financial risks into its supervisory activities in a strategic, proportionate, and risk-based manner. FINMA strives to develop effective supervision with regard to the management of climate risks of the supervised entities and to align its supervisory activities with best international practices. In particular, FINMA examines international practices and recommendations from the standard-setting bodies and decides to what extent it implements them in its supervision. FINMA develops its supervision with regard to the management of climate risks of banks and insurance companies every year and is currently focusing on institutions in supervisory categories 1 and 2.  Going forward, FINMA will tend to intensify its supervision of how institutions deal with climate risks and extend it to a larger number of institutions, by taking into account the principle of proportionality. FINMA will further develop its expectations for the management of climate-related financial risks at the supervised institutions and, where appropriate and necessary, specify them. The specification of specific supervisory expectations is intended to give the supervised entities clarity as to how the general requirements for aspects such as governance, risk management or internal controls relating to climate risks are applied.


    Related Links

    Keywords: Europe, Switzerland, Banking, ESG, Climate Change Risk, Disclosures, Transition Risk, Reporting, FINMA

    Featured Experts
    Related Articles

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    MFSA Sets Out Supervisory Priorities, Issues Reporting Updates

    The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023

    March 02, 2023 WebPage Regulatory News

    German Regulators Issue Multiple Reporting Updates for Banks

    Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8806