BoE and PRA Publish Annual Reports for 2020-21
BoE and PRA published their annual reports and accounts for the period of March 01, 2020 to February 28, 2021. The BoE annual report provides information on activities for the preceding year and highlights strategic priorities for 2021-24. BoE also published its second annual report on the climate-related financial disclosures. The disclosures report covers the climate change strategy of BoE, the governance structures and processes around its climate-related work, and the measurement and management of climate-related risks across its physical and financial operations. For the first time, the report includes scenario analysis drawing on the latest data and modeling techniques to estimate the financial impact of climate-related risks associated with the financial asset portfolios of BoE. In addition, the report includes preliminary analysis of the emissions impact of staff working remotely during 2020.
The key highlights of the BoE annual report include the work done across BoE in responding swiftly to the impact of the COVID-19 pandemic as well as preparing banks and other financial firms for the end of the transition period to a new UK-EU trading relationship. The report also highlights that, during 2020-21, BoE continued to address challenges related to climate change actively through an ambitious climate work program covering both external policy functions and internal operations. The strategic priorities for the 2021-24, as mentioned in the annual report, are:
- Ready policy toolkit and balance sheet for the future to continue to meet monetary and financial stability objectives
- Proactively prepare for emerging risks in the financial system
- Establish a robust regulatory regime for a post-Brexit world
- Shape and deliver the future of payments
- Respond to the challenge of climate change
- Build a diverse and inclusive BoE and modernize the way BoE works
BoE has designated its work on climate change to be one of its key strategic priorities over the next three years. The key goals of this strategy are to ensure that the financial system is resilient to climate-related financial risks, support an orderly economy-wide transition to net-zero emissions, promote adoption of effective TCFD-aligned climate disclosures, and contribute to a coordinated international approach to climate change.
Related Links
- Notification on Annual Reports
- Notification on BoE Annual Report and Accounts
- Notification on PRA Annual Report and Accounts
- News Release on Report on Climate Change Disclosures
- BoE Annual Report and Accounts (PDF)
- PRA Annual Report and Accounts (PDF)
- Report on Climate Change Disclosures
Comment Due Date: September 14, 2021
Keywords: Europe, UK, Banking, Insurance, Climate Change Risk, ESG, Brexit, Annual Report, Disclosures, Strategic Priorities, BoE, PRA
Featured Experts
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous Article
OSFI Consults on Treatment of Credit Valuation AdjustmentsRelated Articles
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
