Capital requirements

Capital requirements can be adjusted to reflect the increased risks of different assets, including fossil fuels. They could also be used to steer financing away from particular industries.
A wind farm at sunset
News| January 22, 2024

ECB reforms fall short of climate challenge, report finds

The European Central Bank’s green reforms fall short of what’s needed to address the climate crisis, according to a new policy report.
Weekly roundup
News| December 13, 2023

ECB warns climate laggard banks of penalty escalation

The ECB considers more aggressive sanctions for climate laggard banks, global regulators launch a new net-zero policy taskforce, plus more in the latest roundup.
Research| November 21, 2023

Low Carbon Allocation in the Implementation of Monetary Policy

This paper reviews monetary and macroprudential tools, such as targeted green refinancing, that the ECB can use to speed up the green transition while maintaining price stability.

Written by European Parliament
Opinion

Latest on Capital requirements

A hand holding a lump of coal with coal mine in the background
News| February 21, 2023

What are climate-adjusted capital requirements?

Much discussed but not yet in force, climate-adjusted capital requirements are viewed by many as a key element in the bank regulation toolkit to address climate-related risks.
A man holding a phone to his ear walks past a large display of national flags, arranging in a series of concentric circles
News| February 3, 2023

Systemic view needed when implementing climate regulation, says World Bank

Climate-related prudential measures must be carefully calibrated in order to avoid migrating risks to smaller lenders, World Bank economists have warned.
Weekly roundup
Three blue-and-yellow macaws perched on a branch
News| February 1, 2023

Central banks urged to study nature-economy tipping points

Nature-related risk assessments must consider tipping points, World Bank considers impact of climate capital measures, and more from this week in green central banking.
Bank of England
News| January 31, 2023

BoE puts climate capital plans on hold

The Bank of England will not release guidance in the near future on potential changes to its capital framework in light of mounting climate-related risks, despite an earlier commitment to do so.
The European Parliament building in Brussels with flags of member states in the foreground
News| January 25, 2023

EU lawmakers opt against one-for-one climate capital requirements

EU lawmakers have opted against supporting a one-for-one capital rule for lending to new fossil fuel projects, despite backing a similar measure for crypto assets.

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