May 11, 2024
By Highpoint Digest News
Washington, DC – (Highpoint Digest) – The Federal Reserve Board on May 09, 2024, released a summary of the exploratory pilot Climate Scenario Analysis (CSA) exercise that it conducted with six of the nation’s largest banks.
The summary describes how these banks are using climate scenario analysis to explore the resiliency of their business models to climate-related financial risks. Participating banks took a wide range of approaches in this exercise to consider the possible implications of different physical and transition risk scenarios. The exercise highlighted data gaps and modeling challenges that arise when estimating the financial impacts of highly complex and uncertain risks over various time horizons.
The sic banks involved in the exercise were Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo.
The exercise was exploratory in nature and did not have capital consequences. Drawing on lessons learned from the exercise, the Board will continue to engage with participating banks regarding their capacity to measure and manage climate-related financial risks.
For more information please click on the following link below
Climate Scenario Analysis Exercise Results
Source: Federal Reserve Board
Image courtesy of the Federal Reserve Board
