Climate Politics
ECB Amends Bank Capital Reviews Amid Extreme Weather Risks
Homes beside a riverbed destroyed after flash floods in Chiva, Spain, in 2024.
Photographer: Angel Garcia/BloombergTakeaways by Bloomberg AI
The European Central Bank is embedding climate risk into regular reviews of how well banks can absorb losses, marking a new chapter in its supervisory approach.
The intention is to “incorporate, more decisively and in a more business-as-usual way, climate change and nature-related risks” in the ECB’s methodology for its so-called Supervisory Review and Evaluation Process, Patrick Amis, director general for specialized institutions and less significant institutions, said in an interview.