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.
30 Jul 2021 06:19 PM
Key factors to keep in mind before the US markets open
30 Jul 2021 04:12 PM
Indian equity indices ended marginally lower on the first day of the August F&O series.
30 Jul 2021 04:09 PM
Indian rupee versus dollar which ended stronger today. Tap to know
30 Jul 2021 02:51 PM
Check out how European markets are reacting today
30 Jul 2021 02:09 PM
USD/JPY traded slightly higher around 109.50 levels amid worsening covid situation in Japan and rebounding Dollar.
30 Jul 2021 12:59 PM
GBP/USD traded in a narrow range around 1.3935-1.3965 levels as Dollar index rebounds slightly.