Fed’s Brainard Signals ‘Guidance’ To Big Banks On Climate Risk Reviews

Federal Reserve Governor Lael Brainard is signaling that the central bank might offer “guidance” for large banks on how to measure and monitor climate change-related risks, potentially shedding new light on how the financial regulator could boost its activity in this area. During the Fed’s annual Stress Testing Research Conference at the Federal Reserve Bank of Boston on Oct. 7, Brainard said it’s important for the agency to “improve our understanding of climate-related financial risks and vulnerabilities,” and called for...