Climate change and financial risks : the central role of central banks
Climate change creates financial risks that are core to the mandates of central banks and supervisors to ensure financial stability and safety and soundness. The Bank of England has thus taken a wide range of measures to take these specific risks into account, both nationally and internationally through the central banks and supervisors Network for Greening the Financial System.
Climate change poses significant risks to the economy and to the financial system. While these risks may only crystallise in full over longer time horizons – and so may feel abstract and far away now – they are in fact very real, fast approaching, and in need of action today.How does climate change affect the financial system ?Climate change creates financial risks in two ways:Physical risks arise from damage to property, land and infrastructure as a result of catastrophic weather-related events and broader climate trends such as heatwaves, hurricanes, droughts, floods and rising sea ...Lire la suite >>