BoE climate stress test finds impact will fall on bank customers
Sam Woods questions whether capital is “best tool” to address climate change
Banks and insurers are likely to be able to withstand the impact of climate change, in many cases by making their customers bear the costs, the Bank of England found in its first climate stress test.
Carried out in 2021, the Climate Biennial Exploratory Scenario (CBES) was the UK central bank’s first comprehensive study of the UK financial system’s ability to withstand climate change and the transition to a greener economy.
The findings, published today (May 24), show costs from climate change
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