Q: On climate change stress tests, what.........>

BOE: Q: On climate change stress tests, what feedback have you had from

industry? What do you want to achieve?

- A: Feedback is ongoing. Banks and insurers are very engaged. Important to

emphasise these are not 'gotcha' stress tests on capital ratios, risk-weighted

assets etc but on strategy of institutions given rising physical consequences of

climate change. This is entirely related to macro-prudential responsibilities of

the Bank of England and know other CBs will do similar exercises to make sure

systems have resilient strategies.

- Q: What is important for financial sector? Harmonisation or regulatory

flexibility?

- A: These are decisions for governments/negotiators. Important to maintain high

standards but outsourcing this regulation doesn't seem like a very good idea.

There are reasons why we're big fans of equivalence, but must be based on

outcomes.