Category: Mandates

Credit ratings agency Fitch predicts that banks and insurers around the world will face climate stress tests within three years. Part of a growing trend, as supervisors move to tackle climate risk, the tests that have been announced so far in the UK and Europe “will not test capital adequacy but may lead companies to look more closely at whether they need to hold more capital to cover potential losses from climate-change risks”, Fitch noted. But “in the longer term, we expect climate stress tests to feed into prudential capital requirements”. French financial institutions will announce the results of their stress tests in April, while the UK will commence its biennial stress testing in June. The European Central Bank will test significant eurozone banks next year, and authorities in Australia, Brazil, Canada, Hong Kong and Singapore have also announced tests for 2021 and 2022.

The United Arab Emirates has reportedly introduced rules for …