The Fed's New Climate-Change Mandate - WSJ - The Wall Street Journal
The Fed’s New Climate-Change Mandate - WSJ
Updated Oct. 25, 2023 9:50 pm ET
There’s no shortage of risks to keep bankers up at night: Rising interest rates, wars, commercial real estate, a weakening Chinese economy. Yet financial regulators want banks to focus on—drum roll, please—climate change.
The Federal Reserve, Federal Deposit Insurance Corp., and Comptroller of the Currency on Tuesday published guidance directing banks on how to manage putative climate risks. The agencies say they aren’t dictating how banks lend to accelerate the shift to a lower-carbon economy. But reading between the lines, that’s exactly what they’re doing.
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