“All banks have many blind spots and may have faced major weather disasters,” said Frank Elderson, vice president of the supervisory committee.
Frank Elderson, vice chairman of the European Central Bank’s Board of Supervisors (ECB), stated that no bank has met the expectations of surveillance in managing climate risk.
At a meeting on bank climate risk, Elderson said: “Almost all banks have developed plans, and many banks have begun to gradually improve their practices.”
However, he added, “No bank under our supervision can meet all our expectations.”
“All banks have many blind spots and may have faced major weather disasters,” Elderson said.
They still have a long way to go to meet the regulatory expectations set by the European Central Bank for them. All banks have a lot to recover because the climate risk they take will affect their regulatory requirements.
However, Elderson said that the inertia that some banks have shown so far on climate-related issues has sent a clear warning signal to regulators.