BCBS D502

Definition

BCBS D502 is a document published by the Basel Committee on Banking Supervision on April 2020 in the Credit Risk category.

Title

Climate-related financial risks: a survey on current initiatives.

Abstract

This report summarises the main results of a stocktake conducted by the Basel Committee of its members' initiatives on climate-related financial risks.

The survey suggests that:

the majority of Basel Committee members consider it appropriate to address climate-related financial risks within their existing regulatory and supervisory frameworks;
an overwhelmingly large share of members have conducted research related to the measurement of climate-related financial risks, while a number of members identified operational challenges in assessing climate-related financial risks such as data availability, methodological challenges, and difficulties in mapping of transmission channels. A majority of the members have raised risk awareness with banks through different channels, and many banks are disclosing information related to climate-related financial risks to some extent; and
approximately two-fifths of members have issued, or are in process of issuing, more principles-based guidance regarding climate-related financial risks. However, the majority of members have not factored, or have not yet considered factoring, the mitigation of such risks into the prudential capital framework.

Document Profile

Publication Date: April 2020
Publication Type: Other
Publication Status:
Publication Category: Credit Risk
Number of Pages: 14
Keywords: Liquidity Risk, Credit Risk, Market Risk

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