Fed begins climate risk assessments for largest lenders
Six largest US banks must assess exposure to physical and transition risks by July 31
The US Federal Reserve has asked the six largest banks in the US to evaluate the physical and transition risks that climate change poses to their portfolios.
Banks must assess their risks using two scenarios the Fed has created and submit their results by July 31.
The physical risks scenario outlines climate-related events affecting commercial and residential real estate in the north-east US and another region, which lenders can choose.
The transition risks scenario asks banks to consider how
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