In Dangerous Deregulatory Step, Comptroller of the Currency Leaves Banks Vulnerable to Climate Change
WASHINGTON, D.C. — The Office of the Comptroller of the Currency (OCC) today announced it would withdraw from participating in the interagency principles for climate-related financial risk management for large financial institutions. Adopted in October of 2023, the principles are a framework that advises financial institutions on safe and sound practices to mitigate climate-related financial risks. In response, Elyse Schupak, policy advocate with Public Citizen’s Climate Program, issued the following statement:
“The OCC’s decision is deeply irresponsible. The characteristics of climate risks—namely their severity, permanence, long time horizons, and the difficulty modeling them—means they are not well captured in the OCC’s existing guidance for banks to maintain a sound risk management framework.
“Failing to measure risks in the banking system, such as those from climate change, won’t make those risks go away. Instead, it will make risks to individual banks more difficult to assess and mitigate and, in turn, create vulnerabilities in the broader financial system.”
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