Politico discusses whether banks should be forced to price in Climate Change? An idea gaining global momentum could take hold in a Biden administration.
Since the 2008 financial crisis, regulators each year have required big banks to prove they could keep lending through new calamities. The rules, so far, have focused on purely economic disasters: Do they have enough capital to keep their doors open when markets collapse, or if unemployment explodes?
But there’s another kind of risk that didn’t burst onto the radar during that crisis but could trigger just as much of an economic disaster: climate change.