MNI BRIEF: No EA Bank Meets All C&E Standards, ECB Study Finds

No European bank currently meets all the European Central Bank's expectations on the climate and environment(C&E), Executive Board member Frank Elderson writes in a blog post published Monday, with the considerable variation in the plans for improvement presented and only half set to be in place by the end of next year. It comes as the supervisors publish the results of their first-ever large-scale assessment of banks' climate and environmental risk management provisions, covering 112 directly supervised banks with combined assets of EUR24 trillion.

"Banks have made efforts to meet ECB expectations regarding management bodies, risk appetite and operational risk management," Elderson writes. "However, they lag behind in areas such as internal reporting, market and liquidity risk management, and stress testing. For example, half of banks haven't planned concrete action to integrate climate and environmental risks into their business strategies, and less than one-fifth have developed key risk indicators to monitor."