BoE to test banks on climate risks over 30-year horizon

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Banks are expected to prepare for the impact of extreme weather

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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