Environmental groups have criticised the BoE for including debt issued by energy companies and other businesses with significant greenhouse gas emissions in asset purchase programmes designed to support the economy.
Bailey announced the BoE was setting a date of June 2021 for a climate ‘stress test’ for banks and insurers, akin to the regular stress tests introduced after the financial crisis designed to ensure lenders can withstand severe economic shocks.
The BoE would not impose new capital buffers on lenders as a direct result of the test - which has been delayed because of the pandemic - but would tell banks to think through their capital needs.
“The BoE was working with Britain’s finance ministry on future requirements for climate risk disclosure within the financial sector”, Bailey said.
18 Jan 2021 05:01 PM
The Chinese economy reported growth in 2020, as it controlled the coronavirus outbreak in the country and positioned itself as the only major country to report economic growth.
18 Jan 2021 04:07 PM
Indian Rupee Versus Dollar Which Ended Stronger Today?
18 Jan 2021 03:59 PM
All Sectors In Red?
18 Jan 2021 02:49 PM
ECB And Italian Politics Pressuring The Euro?
18 Jan 2021 02:33 PM
Pound extended losses and dropped to fresh multi-day lows, around 1.3535 amid the cautious mood benefitting Dollar’s safe-haven status.
18 Jan 2021 12:52 PM
Yen rose as timid U.S. economic data and surging global coronavirus cases kept investors watchful.