The ECB dissatisfied with the transparency of banks on climate risk

FRANKFURT, March 14 (Reuters) – Major euro zone banks are still failing to meet the European Central Bank’s expectations for transparency on the risks to which they are exposed by climate change and must change their attitude, the ECB says in a statement. an assessment published on Monday.

“While there have been improvements since the first assessment at the end of 2020, no bank fully meets the expectations of the supervisor,” she writes.

“Regulation on climate and environmental risk transparency will become stricter in the years to come as the expectations of market participants and public opinion increase,” she explains. “Banks must therefore adjust their practices without delay.”

Its study points out that around 75% of banks still do not specify whether climate and environmental risks have a material impact on their overall risk profile, even though almost half of those who have admitted that they are exposed to this type of risk.

The ECB’s next assessment on the subject is scheduled for the end of the year.

(Report Balazs Koranyi, French version Marc Angrand, edited by Matthieu Protard)