Featured Product

    BoE to Launch Climate Biennial Exploratory Scenario Exercise in June

    November 13, 2020

    BoE announced plans to launch the Climate Biennial Exploratory Scenario (CBES) in June 2021, with the publication of scenarios for this exercise. In December 2020, BoE will inform participants about the high-level approach for the CBES in a number of key areas, including counterparty exposure data. It will also release a provisional set of scenario variables to be included in the exercise. BoE plans to release a set of draft data templates as well as a draft qualitative questionnaire for feedback from participants in February 2021, with the BoE expecting to release a finalized set of data templates and qualitative questionnaire. in April 2021. End of December 2020 will be the balance-sheet cut-off date for the exercise, with the participants' initial submissions due by the end of September 2021.

    These decisions reflect feedback that BoE received following the publication of its December 2019 discussion paper on design of the 2021 biennial exploratory scenario on the financial risks from climate changeIn addition to the Society of Lloyd’s (10 selected Managing Agents), the following institutions are being invited to take part in this exercise:

    Large UK banks and building societies

    Large UK life insurers

    Large UK general insurers

    Barclays

    Aviva (Group)

    Aviva (Group)

    Lloyds Banking Group

    Legal & General (Group)

    Direct Line (Group)

    HSBC

    M&G (Group)

    RSA (Group)

    Royal Bank of Scotland

    Phoenix (Group)

    AXA (UK entity only)

    Santander UK

    Scottish Widows (Group)

    Allianz (UK entity only)

    Standard Chartered


    AIG (UK entity only)

    Nationwide Building Society



     

    BoE will use the 2021 biennial exploratory scenario to explore the financial risks posed by climate change. The exercise will test the resilience of the current business models of the largest banks, insurers, and the financial system to climate related risks and, therefore, the scale of adjustment that will need to be undertaken in coming decades for the system to remain resilient. In December 2021, BoE plans to announce the decision on whether to run a second round of the exercise. In the event of a second round, BoE will publish results at the end of the first quarter of 2022. 

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance, Stress Testing, ESG, CBES, Climate Biennial Exploratory Scenario, Climate Change Risk, Implementation Timeline, BoE

    Featured Experts
    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153