The federal bank regulatory agencies have announced the withdrawal of the interagency Principles for Climate-Related Financial Risk Management for Large Financial Institutions. According to the agencies, they have determined that specific principles for managing climate-related financial risk are not necessary at this time.
In their statement, the agencies said, "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. 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."
This decision means that large financial institutions will continue to follow existing risk management standards, which the agencies believe are sufficient to address both current and emerging risks, including those related to climate.
Further details can be found in the Federal Register notice on the rescission of the principles and in statements issued by Vice Chair for Supervision Bowman, Governor Barr, and Governor Cook.