Sector Regulation Sector Regulation

US Fed aims to determine whether banks can improve climate-shock planning with `scenario analysis’ tool

By Neil Roland
  • 19 Feb 2021 16:24
  • 19 Feb 2021 16:24
The US Federal Reserve is watching other central banks’ experimentation with a supervisory "climate scenario analysis" tool to determine whether it can help banks prepare for the impacts of global warning on their finances.

“Scenario analysis may be a helpful tool to assess the microprudential and macroprudential implications of climate-related risks under a

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