Marc Irubetagoyena
BNP Paribas
Head of Group Stress Testing and Financial Simulations
Climate change poses significant risks to the economy, including the degradation of infrastructure, the destruction of crops, increase in the prices of raw materials and food products, etc. Climate risks are an important issue for banking supervisors insofar as they are likely to have an impact on the financial health of banks and their capital.
In the first half of 2022, the ECB (European Central Bank) carried out the first climate stress test for 109 major banks in the euro zone. The purpose of this ‘stress test’ is to ensure the solidity of the banks and to define the capital they need to cover their climate risks.
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