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MNI BRIEF: Canada May Set Climate Change Capital Requirement

OTTAWA (MNI)

Canada's bank regulator on Monday said it's exploring new capital requirements to account for climate-change risks, as part of the launch of a new three-month consultation with industry.

OSFI is "exploring whether there are climate-related considerations beyond what is in the existing capital framework that should be considered," according to the paper. Climate risks may also be added to stress tests and other risk assessments, and the review also looks at whether greater public disclosure would improve "market discipline."

OSFI chief Jeremy Rudin said in a speech Monday that "we will need to ensure that the financial sector is prepared to manage through a wide range of plausible climate-related risk scenarios."

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

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