• Funding
  • Investing
  • Lending
  • Insurance
  • Banking
  • Wealth
  • Fintech
  • Venture
  • Crypto
Subscribe
No Result
View All Result
  • Equity Funding
  • Stocks
  • Mutual Funds
  • Credit Cards
  • Loans
  • Insurances
  • Savings
  • Crypto Trading

Federal Reserve joins global group focused on fighting climate change

CNBC NewsbyCNBC News
January 2, 2021

Federal Reserve Chair Jerome Powell prepares for a House Financial Services Committee hearing on “Oversight of the Treasury Department’s and Federal Reserve’s Pandemic Response” in the Rayburn House Office Building in Washington, D.C. on Dec. 2, 2020.

Jim Lo Scalzo | Reuters

The Federal Reserve has made a move that cements its nod to the risk that climate change could pose to the financial system.

In a statement released Tuesday, the central bank said it has formally joined a global peer group that is addressing climate’s impact on finance. The Network of Central Banks and Supervisors for Greening the Financial System, as it’s called, was formed in 2017 and now has 83 members from around the world. The U.S. already had been an informal participant for more than a year.

“As we develop our understanding of how best to assess the impact of climate change on the financial system, we look forward to continuing and deepening our discussions with our … colleagues from around the world,” said Federal Reserve Board Chair Jerome H. Powell in a statement.

More from Impact Investing:
Here’s why 401(k) plans lag in green investment options
Biden administration could be impact investing game changer
How to seize climate change investing opportunities

The issue of climate change has become a more pronounced topic at the Fed, in light of the persisting trend of higher average temperatures and environmental shifts such as rising sea levels and more frequent severe weather events.

For instance, in its most recent financial stability report, the Fed explored climate change for the first time, saying, in part, “Federal Reserve supervisors expect banks to have systems in place that appropriately identify, measure, control, and monitor all of their material risks, which for many banks are likely to extend to climate risks.”

The translation is that if those dangers aren’t considered, hazards such as storms, floods, droughts or wildfires could change the value of assets suddenly, causing a shock to the system.

At this point, it’s uncertain how the Fed’s participation in the global network will impact policy and regulation. While Democrats had urged membership, nearly 50 Republican congressional lawmakers last week sent a letter to the Fed requesting that it slow down and avoid following proposals elsewhere that would require banks to consider climate change in stress tests. (Those tests generally are a way for regulators to assess the financial soundness of a bank by requiring them to run what-if scenarios).

The letter also expressed concern that introducing climate-change aspects into those measurements could have a chilling effect on banks’ willingness to extend credit to industries such as coal, oil and gas.

However, the move was applauded by the nonprofit Ceres Accelerator for Sustainable Capital Markets.

“This news … is a clear indication that the agency is acknowledging its role in addressing the systemic risk of climate change,” said Steven Rothstein, managing director of the group, in a statement.

Read The Original Article on CNBC News

Related Topics

Personal Finance

Expedia Group debuts online Covid info search for 7 travel brands

Bitcoin

Millennium Management Hedge Fund Gains Exposure to Bitcoin through Grayscale

Prev Next

You May Like

Personal Finance

Expedia Group debuts online Covid info search for 7 travel brands

Bitcoin

Millennium Management Hedge Fund Gains Exposure to Bitcoin through Grayscale

Advisory

Biden tax plan may lead to more Roth retirement accounts

Advisory

Just 3% of near-retirees can correctly answer all of these Social Security benefit questions

Financial News

Personal Finance

Whole Foods CEO John Mackey: Store managers could be making ‘well over $100,000,’ without a college degree

CNBC News
by CNBC News
Bitcoin

France Declares War on Crypto Anonymity, Cites ‘Terrorism’ in KYC Mandate

CoinDesk
by CoinDesk
Blockchain News

Canadian Tax Agency Asks Coinsquare Crypto Exchange to Hand Over Clients Personal Data

Blockchain News
by Blockchain News
Earning

DraftKings shares rise after reporting a beat on revenue, more growth in paying customers

CNBC News
by CNBC News
Personal Finance

Don’t overlook these 6 money-saving employee benefits during open enrollment season

CNBC News
by CNBC News
Stock Market

4 warning signs in the November jobs report: ‘This feels like the calm before the storm’

CNBC News
by CNBC News
Bitcoin

Latin America’s Big Blockchain Opportunity

CoinDesk
by CoinDesk
Stock Market

Chinese streaming and mobile gaming company releases rap video with quarterly results

CNBC News
by CNBC News
Load More

© 2020, FinanceLane

Home | Contact | Terms and Conditions | Disclaimer | Privacy Policy

  • Home
  • News Feed
    • Equity Funding
    • Debt Funding
    • Crowdfunding
    • Real Estate Funding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Private Equity
    • Merging & Acquisition
    • Real Estate
  • Lending
    • Personal Loan
    • Business Loan
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Auto Insurance
    • Education Insurance
    • Health Insurance
  • Banking
    • Business Banking
    • Payments Bank
    • Investment Banking
    • Individual Banking
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Alternative Financing
    • Payments
    • Asset Management
    • Digital Banks
    • Softwares
  • Venture
    • Startup Ecosystem
    • Merging & Acquisition
    • Equity Investing
    • Franchising
    • Business Offers
  • Fintech
    • Alternative Financing
    • Asset Management
    • Digital Banks
    • Softwares
    • Payments
  • Crypto
    • Crypto Investing
    • Crypto Trading
    • Crypto Coins
    • Bitcoin
    • Blockchain
    • DAPP
  • Subscribe
  • Contact
  • Login

© 2020 FinanceLane - Terms and Conditions | Disclaimer | Privacy Policy

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
← Art Cashin shares his 2021 outlook, sees stocks as a bit rich ← Massachusetts Secretary of Commonwealth Galvin says Robinhood is a reckless company gamifying investing
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.