Fed Blocks Tough Climate Risk Proposal By Global Banking Watchdog, Bloomberg Reports By Reuters | Old North State Wealth News
Connect with us


Fed blocks tough climate risk proposal by global banking watchdog, Bloomberg reports By Reuters



(Reuters) -The U.S. Federal Reserve has blocked a push by a global banking watchdog to make climate risk a focus of financial rules, Bloomberg News reported on Wednesday, citing people familiar with the matter.

The Basel Committee on Banking Supervision had proposed that starting January 2026, banks publish detailed information about the impact of climate change on their business to help investors and regulators check on how the risks are managed.

The European Central Bank (ECB) is also pushing for the committee to further propose that lenders disclose their strategies to meet climate commitments, but U.S. officials cited concerns that the watchdog was overstepping its purpose, the Bloomberg report said.

There has been fierce resistance against tough proposals on climate disclosures from U.S. companies. Last month, 10 Republican-led states sued the Securities and Exchange Commission, challenging new federal rules that require U.S.-listed companies to report climate-related risks.

Critics of tougher climate proposals accuse the watchdogs of prioritizing political objectives over sound financial regulation, but supporters say the disclosures are required to limit financing to the fossil fuel industry.

The committee’s members include central banks and banking regulators. It writes high-level rules for members, but any agreement reached at Basel has to be approved by regulators and legislators in each individual jurisdiction.

The ECB, the Fed and the Basel Committee declined to comment on the Bloomberg report.

Read the full article here


Copyright © 2022 ONSWM News. Content posted on the Old North State Wealth News page was developed and produced by a third party news aggregation service. Old North State Wealth Management is not affiliated with the news aggregation service. The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date the articles were published. The information presented is not an offer to buy or sell, or a solicitation of any offer to buy or sell, any of the securities discussed.