Regulator warns on fragmentation of climate risk supervision
International standards needed to support growing preference for Basel Pillar 2 approach
As rulemakers cool on the idea of headline bank capital charges for climate risk, a leading regulator has suggested there will need to be global standards around subtler forms of climate risk supervision, to avoid creating a fragmented landscape.
Fernando Restoy, chair of the Bank for International Settlements’ Financial Stability Institute, told the annual meeting of the Institute of International Finance (IIF) on October 11 that he favoured supervisory requirements for climate risk – Pillar 2
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