The Bank of England will assess the financial risks arising from zero-emissions targets as well as the physical impact of extreme weather, such as heavy rainfall and persistent floodingThe Bank of England has been accused of failing to meet its financial stability mandate by refusing to disclose individual bank results or use capital penalties in its inaugural climate change stress tests. Unlike normal stress tests, the analysis “will not be used to set capital requirements” and results for the seven banks and 12 insurers involved will be released only in aggregate. The Bank insisted that its work was not a stress test, despite the pledge made by former governor Mark Carney in 2019, but an “exploratory exercise” of the financial risks. SponsoredBank officials have been driving global efforts to embed the cost of global warming into financial stability planning to ensure that markets properly price the long-term risks, with climate change added to

Source: The Times June 08, 2021 11:01 UTC