"Norway’s central bank issued its most comprehensive warning to date about the risks of climate change for the oil-producing country’s banks and financial markets.
Climate risk should be included in the assessment of banks’ systemic risk and ensuing additional capital requirements, Norges Bank said in its financial stability report published on Tuesday, without providing more details. While Norwegian bank’s exposure to the oil industry has dropped in recent years, it remains “important,” the central bank said.
“Climate risk, like any other risk, must be included in banks’ risk assessments,” Norges Bank Deputy Governor Jon Nicolaisen said in an interview. “That can have consequences for capital requirements.”"
Mikael Holter and Sveinung Sleire report for Bloomberg November 5, 2019.
SEE ALSO:
"How Serious Is Climate Change Risk? Just Ask a Banker" (Bloomberg)
"Cities Are Behind in Gauging Their Climate Risk" (E&E News)
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