November 17, 2021

REUTERS EVENTS Bank of England’s Bailey unconvinced by carbon capital rules

Bank of England Governor Andrew Bailey poses for a photograph on the first day of his new role at the Central Bank in London, Britain March 16, 2020. Tolga Akmen/Pool via REUTERS

Bank of England Governor Andrew Bailey said on Tuesday there was no case yet for making financial institutions set aside more capital for climate change risks, even though markets were underpricing the danger of disruption.

Central banks around the world are increasingly focused on the costs of climate upheaval as they try to steer a path for their economies and the financial systems through the transition to net-zero carbon emissions as well as extreme weather events.

This month the BoE launches its first environmental ‘stress test’ of how banks and insurers are exposed to risks such as greater flooding or large shifts in energy production.

But Bailey told the Reuters Responsible Business 2021 conference it…

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