The Federal Deposit Insurance Corporation and the Federal Reserve Board withdrawn their interagency principles for climate-related financial risk management for large financial institutions.
This policy was issued jointly in October 2023 as part of the Biden administration’s focus regarding the impact of climate change on financial services risk. The Office of the Comptroller of the Currency discontinued this Biden-era policy in March.
“The agencies do not believe principles for managing climate-related financial risk are necessary because the agencies’ existing safety and soundness standards require all supervised institutions to have effective risk management commensurate with their size, complexity, and activities,” said the agencies in a joint statement. “In addition, all supervised institutions are expected to consider and appropriately address all material financial risks and should be resilient to a range of risks, including emerging risks.”
