Legal & Regulatory News

Basel Committee reviewing climate-related financial risks

On 20 September 2021, the Basel Committee on Banking Supervision (BCBS) published a press release following two BCBS meetings which took place on the 15th and 20th September 2021.

Following the publication of a series of analytical reports on climate-related financial risks in April, the BCBS announced that it is assessing the extent to which the current Basel framework adequately mitigates such risks. As part of this work, BCBS also announced that it is developing a set of related supervisory practices, which it plans to consult on later this year. Alongside this, the BCBS also intends to consider whether any additional disclosure, supervisory and/or regulatory measures are needed.

Finally, the BCBS welcomed the work of the International Financial Reporting Standards Foundation towards developing a common set of global sustainability standards to improve consistency, comparability and reliability of sustainable lending.

Click here to access the press release.