CBB to Address Climate Risks in Phases
The Central Bank of Bahrain (CBB) announced that it intends to address climate risks in phases. As a first step, CBB requires all licensees to raise awareness within their organization about climate-related risks and assess how they would identity and address these risks. CBB encourages the licensees to include these topics in their annual training plans and to require members of the board, management, and staff to attend various training programs, including those offered by the Sustainable Development Academy of Bahrain Institute of Banking and Finance.
In the near future, CBB will issue requirements, which would focus on qualitative disclosure requirements with respect to the efforts made to address climate-related risks in the initial phase, followed by more comprehensive requirements including quantitative requirements in subsequent phases. CBB requirements would be developed based on guidance from relevant international official sector bodies such as the Basel Committee on Banking Supervision, the International Association of Insurance Supervisors, the International Organization of Securities Commission, and the Financial Stability Board.
Related Link: Circular (PDF)
Keywords: Middle East and Africa, Banking, Climate Change Risk, ESG, Disclosure, CBB
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