Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 69

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 5
Chunk 69
---
)
data,
risk measurement,
and reporting;
and
(6)
scenario 
analysis.
On
December
21,
2022,
the
NYSDFS
proposed
guidance
on
climate-related
financial
risk
management
applicable
to 
NYSDFS-regulated banking
and mortgage
organizations, including
PB.
The
proposed guidance
would address
material financial 
risks related to
climate change faced
by these organizations in
the context of
risk assessment, risk management,
and risk appetite 
setting. California recently enacted climate-related disclosure laws requiring certain companies doing business in California to make 
certain climate-related disclosures, including but not limited to greenhouse gas emissions data and climate-related risks. In addition, 
certain states have
enacted, or have
proposed to enact,
“anti-ESG” statutes, regulations or
policies, including statutes that
prohibit 
financial
institutions from
denying or
canceling products
or
services
to
a
person, or
otherwise discriminating
against a
person in 
making available products or services, on the basis
of social credit scores and certain other factors.
Incentive Compensation 
The Federal Reserve Board reviews, as
part of its regular,
risk-focused examination process, the incentive compensation 
arrangements of
banking organizations, such
as Popular,
that are
not “large,
complex banking
organizations.” Deficiencies will
be 
incorporated into
the
organization’s supervisory
ratings, which
can
affect
the
organization’s ability
to
make
acquisitions and
take 
other
actions. Enforcement
actions may
be taken
against
a
banking
organization if
its
incentive compensation
arrangements, or 
related
risk-management
control
or
governance
processes,
pose
a
risk
to
the
organization’s
safety
and
soundness
and
the 
organization is not taking prompt and effective measures
to correct the deficiencies. 
The
Federal
Reserve
Board,
OCC
and
FDIC
have
issued
comprehensive
final
guidance
on
incentive
compensation 
policies intended to discourage excessive risk-taking in
the incentive compensation policies of banking organizations
in order to not 
undermine
the
safety
and
soundness
of
such
organizations