US banks seek to open vendors’ black box on green data
Inaugural Fed climate scenario analysis flags lack of transparency around third-party models
The US Federal Reserve and the country’s largest banks have had their differences, especially in recent months. But the regulator’s first ever climate scenario analysis has revealed a common cause: frustration over the climate risk models provided by third party vendors.
The analysis was launched in January 2023, with the findings published in May this year. Among its conclusions from the exercise, the Fed observed: “Participants noted that the lack of historical data and the proprietary nature
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