New climate requirements from the Fed on US banks. Good initiative but not a day too soon. Thought provoking.

The Federal Reserve calls on the US's six largest banks to report how their operations would be affected by a range of different climate risks and the country's tightened climate goals.
Among other things, the banks must map how a series of hypothetical climate scenarios, such as floods, droughts and fires in different regions, can affect their loan and property portfolios. But also how the conditions for their corporate lending are affected by the United States' climate goal of net zero emissions by 2050, reports Reuters.
According to the US central bank Fed, the purpose of the exercise is to create an understanding of the effect climate change and the green transition can have on the financial sector.

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Tabitha Kimani
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18 w
Hopefully this will awaken the banks to invest in green energy and not on fossil fuels. If they thought about the future for a minute, they would redefine their operations.
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George Kariuki
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18 w
This is a positive development as it shows that the Federal Reserve is taking the issue of climate change seriously and is taking steps to ensure that banks are prepared for the potential impacts of climate change on their operations. However, the statement also implies that this initiative may have been overdue and that more should have been done sooner to address this issue.