"Fed Announces Pilot Program On Climate Risk With Six Major Banks"

"The Federal Reserve Board will enlist six major U.S. banks in a pilot climate risk analysis program, officials announced Thursday.

Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo will participate in the pilot as part of the Federal Reserve’s attempt to determine the financial risk associated with natural disasters and climate change. The exercise will have no consequences to capital, and while data from its findings will be published, none of the banks will be identified by name.

The analysis, set to begin in 2023, will be distinct from the “stress tests” the central bank uses to determine whether financial institutions have sufficient capital to loan during major recessions, according to the announcement."

Zack Budryk reports for The Hill September 30, 2022.

Source: The Hill, 10/03/2022