Free Trial

MNI BRIEF: Canada Bank Czar To Consult On Climate Capital

(MNI) OTTAWA
OTTAWA (MNI)

Canada's bank regulator OSFI said Friday it's consulting with firms around draft guidelines due later this year to ensure they remain "adequately capitalized and liquid through severe yet plausible climate risk scenarios over extended time horizons."

The letter to industry came after a joint paper with the BOC showing the economy and industries tied to energy face major changes if nations move to limit global warming by 2050. The head of OSFI told MNI last month banks may face higher capital requirements to account for climate risk.

"OSFI will reinforce its expectation that Federally Regulated Financial Institutions evaluate and measure their capital available to protect against material risks, including climate-related financial risks, and reflect their assessments in the banks’ Internal Capital Adequacy Assessment Process (ICAAP) or the insurers’ Own Risk and Solvency Assessment (ORSA). OSFI will also reinforce its expectation that FRFIs consider the implications of both physical and transition risks on their liquidity buffers."

MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.