BoE to test banks on climate risks over 30-year horizon
Banks will be expected to model their climate risks over an unusually long horizon, under stress-testing proposals unveiled by the Bank of England (BoE) today (December 18).
The plans, which are now open for consultation, envisage testing banks against three scenarios – based on early, late and zero policy action on climate change – over a 30-year horizon.
As well as asking banks to test themselves against a much longer modelling horizon than standard stress tests (which span five years in the
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