How should capital regulations for banks and insurers be adjusted in response to climate change?
Climate and capital – some outstanding issues
By Marco Bardoscia, Benjamin Guin and Misa Tanaka
|MARCO BARDOSCIA is Senior Economist in the Research Hub of the Bank of England.|
|BENJAMIN GUIN works as a Senior Economist in the Strategy and Policy Approach Division of the Bank of England.|
|MISA TANAKA is Head of Research of the Bank of England.|
There is a lively debate about whether and how capital regulations for banks and insurers should be adjusted in response to climate change. The Bank of England will host a conference on Wednesday 19 October 2022 to discuss the points in favour of and against adjustments to the regulatory capital framework to take account of climate-related financial risks.
This article represents the opinion of the authors, and not necessarily the opinion of the AAE.
This article was published in The European Actuary No. 31 – September 2022
Originally published on the Bank Underground website in June 2022.