Tag: Climate Risk

Central Banks Must Heed Their Own Warnings on Climate Risks

| 13 October 2020
Blog, Monetary | Tags: Asset Purchases, Central Banks, Climate Risk, Collateral Frameworks
The Central Banks and Supervisors Network for Greening the Financial System (NGFS), a group of more than 70 central banks and financial supervisors across the globe, has repeatedly highlighted that climate risks are financial risks. Its members have also continuously put a spotlight on the ... continue reading

The Transition to a Sustainable Post-COVID Economy Requires an Urgent Shift in Central Bank Risk Management

| 10 July 2020
Blog, Monetary | Tags: Central Banks, Climate Risk, Covid-19, Financial Regulation, Monetary Policy Operations, Precautionary principle
The COVID-19 crisis is profoundly and durably transforming our economies. So will the transition to a low-carbon economy, which is necessary to contain the environmental crisis ahead of us. Shifting our economic system from its current state to a sustainable post-COVID version entails large and ... continue reading

Shifting Gears: Integrating Climate Risks in Monetary Policy Operations

| 20 January 2020
Monetary, Policy Briefs | Tags: Asset Purchases, Central Banks, Climate Risk, Collateral Framework, Credit Risk
The assets central banks purchase and accept as collateral are at the core of monetary policy implementation. Risk considerations play a crucial role in the selection of these assets: central banks seek to limit their holdings and eligible collateral to assets that minimize their risk ... continue reading

Climate Risk and Financial Systems of Latin America: Regulatory, Supervisory and Industry Practices in the Region and Beyond

, , , and | 18 December 2019
Discussion Notes, Monetary | Tags: Central Banks, Climate Risk, Financial Regulation, Green Finance, Latin America
In Latin America and the Caribbean (LAC), regional supervisors and regulators have not yet explicitly included nor addressed climate-related risks in binding regulations and/or supervisory measures for the financial sector. This implies significant work ahead for the LAC financial sector to develop effective and complete ... continue reading

Climate Risks in Financial Assets

, and | 4 November 2019
Discussion Notes, Monetary | Tags: Asset Prices, Climate Risk, Climate Stress Tests
This note reviews the empirical evidence available in the academic literature about the impact of climate-related risks on financial assets. It addresses three main questions: does climate change already affect financial asset returns? What is the potential impact of future climate-related costs on financial asset ... continue reading