WASHINGTON—The Office of the Comptroller of the Currency has decided to withdraw from the interagency principles for climate-related financial risk management for large financial institutions, reported the ABA Banking Journal.
In a statement, the OCC described the principles for guiding banks on climate-related financial risk as “burdensome and duplicative,” ABA Banking Journal said.
“The OCC’s existing guidance for banks to maintain a sound risk management framework applies to all activities conducted by supervised institutions and includes potential exposures to severe weather events or natural disasters,” said Acting Comptroller of the Currency Rodney Hood. “I will continue to look for appropriate opportunities to calibrate regulatory requirements to be effective, not excessive, while ensuring the safety, soundness and fairness of the federal banking system.”
The Trump administration has recently withdrawn from several climate initiatives. Both the OCC and Federal Reserve exited international efforts by financial institutions and regulators. Last week, the Securities and Exchange Commission voted to stop defending its climate disclosure rule in court challenges, ABA Banking Journal added