Climate Change Stress Testing for the Banking System

IF 1.3 Q1 LAW

European Company and Financial Law Review Pub Date : 2023-12-07 DOI:10.1515/ecfr-2023-0026

Ebbe Rogge

引用次数: 0

Abstract

717It is apparent that climate change is creating financial risks. These risks are of such a nature that they can be regarded as systemic: they are exogenous shocks which may simultaneously cause or contribute to the failure of multiple significant financial institutions. As a result, regulatory tools available to monitor and manage systemic risk have recently been deployed in the context of climate change risks. Such tools include stress testing and scenario analysis. This article examines international initiatives, such as those of the Network for Greening the Financial System, as well as specific central bank initiatives including those by the Bank of England. After some initial observations around climate data, stress test design, and central banks’ mandate, this paper continues to discuss further possible inclusion in the prudential regulatory framework. In particular, the question is raised if capital requirements should be adjusted and if changes should be made to the risk management and governance framework. This paper argues in favour of the latter, but is more cautious as regards the former.

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银行系统气候变化压力测试

显然，气候变化正在造成金融风险。这些风险的性质可被视为系统性风险：它们是外来冲击，可能同时导致或促成多个重要金融机构的倒闭。因此，用于监测和管理系统性风险的监管工具最近在气候变化风险方面得到了应用。这些工具包括压力测试和情景分析。本文探讨了国际倡议，如绿色金融体系网络的倡议，以及包括英格兰银行在内的中央银行的具体倡议。在围绕气候数据、压力测试设计和中央银行的任务提出一些初步意见后，本文继续讨论进一步纳入审慎监管框架的可能性。特别是，本文提出了是否应调整资本要求以及是否应改变风险管理和治理框架的问题。本文支持后者，但对前者持谨慎态度。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

European Company and Financial Law Review LAW-

CiteScore

1.00

自引率

16.70%

发文量

期刊介绍： In legislation and in case law, European law has become a steadily more dominant factor in determining national European company laws. The “European Company”, the forthcoming “European Private Company” as well as the Regulation on the Application of International Financial Reporting Standards (“IFRS Regulation”) have accelerated this development even more. The discussion, however, is still mired in individual nations. This is true for the academic field and – even still – for many practitioners. The journal intends to overcome this handicap by sparking a debate across Europe on drafting and application of European company law. It integrates the European company law component previously published as part of the Zeitschrift für Unternehmens- und Gesellschaftsrecht (ZGR), on of the leading German law reviews specialized in the field of company and capital market law. It aims at universities, law makers on both the European and national levels, courts, lawyers, banks and other financial service institutions, in house counsels, accountants and notaries who draft or work with European company law. The journal focuses on all areas of European company law and the financing of companies and business entities. This includes the law of capital markets as well as the law of accounting and auditing and company law related issues of insolvency law. Finally it serves as a platform for the discussion of theoretical questions such as the economic analysis of company law. It consists of articles and case notes on both decisions of the European courts as well as of national courts insofar as they have implications on European company law.