The Federal Reserve is putting a greater emphasis on climate change, which could affect the way financial institutions have to prepare for the unexpected.
In November, bank officials spoke about the dangers of climate change on the financial system. Additionally, the Fed’s financial stability report mentioned climate change for the first time. This report usually discusses how economic and market forces could impact banks, insurance companies and other firms.
“Federal Reserve supervisors expect banks to have systems in place that appropriately identify, measure, control and monitor all of their material risks, which for many banks are likely to extend to climate risks,” the financial stability report said.
Fed Leadership Statements
Fed Governor Lael Brainard first mentioned …