Feedback on draft principles for dealing with climate-change-related financial risks was requested from large national banks and thrifts by their federal regulator Thursday.
The Office of the Comptroller of the Currency (OCC) said it made the request of OCC-regulated institutions with more than $100 billion in assets. The agency said it would use the feedback to inform any future guidance it may issue with respect to climate-related financial risk.
The request was made in OCC Bulletin 2021-62, “Risk Management: Principles for Climate-Related Financial Risk Management for Large Banks; Request for Feedback.” The agency issued the principles in conjunction with the bulletin.
“Weaknesses in how banks identify, measure, monitor, and control potential climate-related financial risks could adversely affect banks’ safety and soundness, as well as the overall financial system,” the OCC said in a release. “The principles provide large banks with a high-level framework for the safe and sound management of exposures to climate-related financial risks consistent with existing OCC rules and guidance.”
Comptroller Michael J. Hsu, in a statement, said release of the principles was “an important, concrete step towards ensuring the safety and soundness of large banks in the face of increasing risks from climate change.”
Comments are due by Feb. 14, the OCC said.
OCC Seeks Feedback on Principles for Climate-Related Financial Risk Management for Large Banks