ECB Banking Supervision | 2022 Climate risk stress test
Channel: European Central Bank
Date: 2022-07-08

Climate change and banking supervision.

Climate change affects the safety of our banking sector through physical risks, such as extreme weather events, as well as transition risks, such as uncertainties relating to the shift towards a low-carbon economy.

In our role as a supervisor of European banks, we work to ensure that banks detect, manage, and disclose risks properly, including those stemming from climate change. This helps banks to become more resilient to climate and transition shocks, which in turn contributes to the safety and soundness of the euro area banking sector and financial system as a whole.

https://www.bankingsupervision.europa.eu/about/climate/html/index.en.html