Europe’s banks must change climate risk approach, ECB says
ECB’s first climate change stress test finds 60% of lenders lack stress-testing frameworks
The European Central Bank’s first-ever climate change stress test found most European banks lack adequate frameworks and data to deal with this growing risk.
The ECB found 60% of Europe’s banks do not have stress-testing frameworks to account for their exposure to climate change risk. Andrea Enria, chair of the ECB’s supervisory board, said banks “must urgently step up efforts to measure and manage climate risk”.
They must aim at “closing the current data gaps and adopting good practices that
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