{"id":142975,"date":"2021-10-28T11:35:39","date_gmt":"2021-10-28T11:35:39","guid":{"rendered":"https:\/\/precoinnews.com\/?p=142975"},"modified":"2021-10-28T11:35:39","modified_gmt":"2021-10-28T11:35:39","slug":"britains-banks-face-capital-crackdown-on-climate-risks","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/","title":{"rendered":"Britain's banks face capital crackdown on climate risks"},"content":{"rendered":"

LONDON (Reuters) -The Bank of England said on Thursday it will crack down on banks and insurers that fail to hold enough capital to cover risks from climate-change from next year, as it studies whether bespoke safety buffers are needed.<\/p>

FILE PHOTO: A person walks past the Bank of England in the City of London financial district, in London, Britain, June 11, 2021. REUTERS\/Henry Nicholls<\/figcaption>

Climate-related financial risks are partially captured by current frameworks, but there are gaps, the BoE said in a report on adaption to climate change that marks a shift in thinking.<\/p>\n

The Bank already has powers to force banks and insurers to top up their general capital buffers if climate risks are not sufficiently covered, and it will study whether bespoke company and sector-wide climate buffers are also needed.<\/p>\n

\u201cThis work will help determine whether changes to the design, use or calibration of the regulatory capital framework may also be needed to ensure resilience against these risks,\u201d the BoE said in a statement.<\/p>\n

\u201cWe will provide an update on our approach in 2022 following a call for further research and a conference on climate change and capital requirements.\u201d<\/p>\n

The BoE said in 2019 that banks and insurers should set out by the end of 2021 how they manage risks from climate change and disclose them.<\/p>\n

The bank said in a report on Thursday that the firms it regulates have made \u201ctangible progress\u201d in meeting these expectations, but some are materially more advanced than others, and the bank signalled a shift in gears next year in how it supervises and enforces these requirements.<\/p>\n

\u201cAs we move into 2022, the PRA will actively supervise to ensure firms meet expectations, with firms needing to demonstrate a good understanding and management of climate-related financial risks on an ongoing basis,\u201d it said.<\/p>\n

\u201cIn the report we highlight that we will consider the use of our full supervisory and regulatory toolkit to provide the necessary assurance or remediation where appropriate.\u201d<\/p>\n

Enforcement can range from warnings to mandatory capital top-ups and even fines.<\/p>\n

Separately, the Financial Conduct Authority in its own report said it will scrutinise how well the environmental, social and governance (ESG) characteristics of products align with the claims firms make on sustainability.<\/p>\n

\u201cIncreased capital requirements for some banks and insurers seems highly likely and enforcement action by FCA is a clear threat,\u201d said Paul Edmondson, a financial services partner with law firm CMS.<\/p>\n

The global Basel Committee which writes norms on capital requirements applied by Britain and other leading financial centres, is due to publish an update on its own work on whether climate buffers are needed.<\/p>\n

The BoE, a member of Basel, is expected to be aligned with the global work.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

LONDON (Reuters) -The Bank of England said<\/p>\n","protected":false},"author":3,"featured_media":142974,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"\nBritain's banks face capital crackdown on climate risks - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Britain's banks face capital crackdown on climate risks - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"LONDON (Reuters) -The Bank of England said\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-28T11:35:39+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/10\/Britains-banks-face-capital-crackdown-on-climate-risks.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/\",\"url\":\"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/\",\"name\":\"Britain's banks face capital crackdown on climate risks - Pre Coin News\",\"isPartOf\":{\"@id\":\"https:\/\/precoinnews.com\/#website\"},\"datePublished\":\"2021-10-28T11:35:39+00:00\",\"dateModified\":\"2021-10-28T11:35:39+00:00\",\"author\":{\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/precoinnews.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Markets\",\"item\":\"https:\/\/precoinnews.com\/category\/markets\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Britain's banks face capital crackdown on climate risks\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/precoinnews.com\/#website\",\"url\":\"https:\/\/precoinnews.com\/\",\"name\":\"Pre Coin News\",\"description\":\"precoinnews.com\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/precoinnews.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Britain's banks face capital crackdown on climate risks - Pre Coin News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/","og_locale":"en_US","og_type":"article","og_title":"Britain's banks face capital crackdown on climate risks - Pre Coin News","og_description":"LONDON (Reuters) -The Bank of England said","og_url":"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/","og_site_name":"Pre Coin News","article_published_time":"2021-10-28T11:35:39+00:00","author":"mediabest","twitter_card":"summary_large_image","twitter_image":"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/10\/Britains-banks-face-capital-crackdown-on-climate-risks.jpg","twitter_misc":{"Written by":"mediabest","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/","url":"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/","name":"Britain's banks face capital crackdown on climate risks - Pre Coin News","isPartOf":{"@id":"https:\/\/precoinnews.com\/#website"},"datePublished":"2021-10-28T11:35:39+00:00","dateModified":"2021-10-28T11:35:39+00:00","author":{"@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/precoinnews.com\/markets\/britains-banks-face-capital-crackdown-on-climate-risks\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/precoinnews.com\/"},{"@type":"ListItem","position":2,"name":"Markets","item":"https:\/\/precoinnews.com\/category\/markets\/"},{"@type":"ListItem","position":3,"name":"Britain's banks face capital crackdown on climate risks"}]},{"@type":"WebSite","@id":"https:\/\/precoinnews.com\/#website","url":"https:\/\/precoinnews.com\/","name":"Pre Coin News","description":"precoinnews.com","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/precoinnews.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"mediabest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","caption":"mediabest"}}]}},"_links":{"self":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/142975"}],"collection":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/comments?post=142975"}],"version-history":[{"count":0,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/142975\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media\/142974"}],"wp:attachment":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media?parent=142975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/categories?post=142975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/tags?post=142975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}