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Canada Orders Banks To Plan For Climate Change Risks

CANADA
  • Canada's bank regulator ordered institutions to prepare for "severe, yet plausible" losses linked to climate change, with the first major guidelines falling short of requiring specific levels of capital be set aside for that purpose.
  • Effective fiscal year-end 2024 for Domestic Systemically Important Banks (DSIBs) and Internationally Active Insurance Groups (IAIGs) headquartered in Canada. Otherwise fiscal year-end 2025.
  • Banks only modestly underperforming on the day, -0.8% vs -0.5% for TSX comp.

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