May 26, 2022 14:17 GMT
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- Canada bank regulator OSFI publishes draft climate change guidelines, calls for climate scenario modelling to be incorporated into stress testing
- Federally regulated institutions "should have processes in place to adequately price climate risk-sensitive assets and liabilities and manage these exposures"
- Draft rules may be expanded later but for now don't appear to set new capital requirements, saying institutions "should consider its capital requirements under severe, yet plausible, climate-related scenarios, and climate-related risks that could materialize beyond the... standard capital planning horizon"
- Banks must also make more climate disclosures, a move the federal government sought earlier