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.
13 Apr 2021 07:40 AM
Find out why is the Dollar trading near its 3-week low?
12 Apr 2021 06:35 PM
U.S. stock futures slipped today, signaling a muted opening for major indexes that stand at record highs ahead of a busy week of corporate earnings and economic data.
12 Apr 2021 04:31 PM
Indian equities fell the most in over a month as a rapid surging second wave of the coronavirus across the country acted as the key deterrent to market sentiment.
12 Apr 2021 04:21 PM
The Indian rupee dropped for the sixth consecutive session against the dollar, as a surge in coronavirus cases intensified fears of a delay in economic recovery.
12 Apr 2021 02:54 PM
Pound bounced back from 2 month lows and traded around 1.3750 amid timid US Treasury yields capping Dollar’s gains.
12 Apr 2021 02:46 PM
Check out how European markets are reacting today