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- Fed's Board Governor Brainard: Uncertainty over impact of climate change should not slow incorporation of climate risks into bank planning and supervision
Fed's Board Governor Brainard: Uncertainty over impact of climate change should not slow incorporation of climate risks into bank planning and supervision
- Financial firms should be bracing for climate risks now
- Tools like scenario analysis being studied for possible use in supervision on climate risks
- System would ultimately need standardized, reliable and mandatory disclosures on how firms are prepared to cope with climate risks
- Physical risk from weather events may be hard to assess but shorter-term shifts in policy, for example, could lead to swift changes in asset prices
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