“In establishing this committee, we will leverage the expertise of those outside of government and work collaboratively to improve our collective understanding of how climate change may impact the financial sector.
#Financial stability oversight council series#
The report identified climate change as an emerging and increasing threat to the U.S.’ financial stability, and made a series of recommendations for federal agencies to take action to address the threat, including using scenario analysis to assess climate-related financial risks to financial stability, evaluating the need for new regulations to account for these risks, and enhancing climate-related disclosure.Īccording to CFRAC’s charter, the new committee’s purpose is to assist FSOC “in gathering information on, conducting analysis of, and making recommendations to identify, assess, and mitigate climate-related risks to the financial system.” Responsibilities of the committee will include gathering and analyzing information on climate-related risks to the financial system, identifying and recommending ways to address information gaps and inconsistencies, and making recommendations on identifying, assessing and mitigating the risks. Plans to establish the committee were released last year, as part of FSOC’s Report on Climate-Related Financial Risk. Members of FSCO include the heads of the Federal Reserve, SEC, Federal Deposit Insurance Corporation, and Federal Housing Finance Agency, among others. The council is chaired by the Secretary of the Treasury, and brings together federal financial regulators, state regulators and insurance experts. FSOC’ mandate is to identify risks and respond to emerging threats to financial stability in the U.S.
0 kommentar(er)
