Legal & Regulatory News

Basel Committee on Banking Supervision speech outlining focus of task force on climate-related financial risks

The Basel Committee on Banking Supervision (BCBS) has published a speech by Kevin J Stiroh, Co-Chair of the Task Force on Climate-related Financial Risks (TFCR), at the 2020 IIF Annual Membership Meeting which outlines areas of focus of the TFCR.

The speech summarises the key findings of the TFCR stocktake of members' existing regulatory and supervisory initiatives on climate-related financial risk, conducted in its first phase of work before the pandemic. The TFCR has a current focus on understanding climate risk transmission channels as well as methodologies for measuring and assessing these risks, with plans to complete these research initiatives by mid-2021. Building on this, the TFCR will consider the extent to which climate-related financial risks are incorporated in the existing Basel Framework, and identify effective supervisory practices to mitigate such risks.

In addition, the TFCR is actively monitoring related initiatives in order to leverage such work and facilitate information-sharing across parallel initiatives to the extent possible, and is also engaging directly with the private sector in order to inform their work.

Click here to access the speech.