Report Contents

July 14, 2021

Stress-testing banks for climate change – a comparison of practices

Share on twitter
Share on whatsapp
Share on facebook
Share on linkedin
Share on email
Share on reddit

Listen to our reports with a personalized podcasts through your Amazon Alexa or Apple devices audio translated into several languages

Originally published on by Bank of International Settlements . Link to original report

( < 1 min)

FSI Insights No 34, July 2021. This paper discusses the challenges that emerge when trying to adapt traditional stress tests to banks’ climate-related risks. These challenges relate to: (i) data availability and reliability; (ii) the adoption of very long time horizons; (iii) uncertainty around future pathways of key reference variables covering physical risks (eg floods, temperature increases and rising sea levels); and (iv) uncertainty relating to transition risks (eg changes in climate policies, technologies or consumer preferences).

Read Full Report