Risk & Resilience

The European Supervisory Authorities (ESAs)—comprising the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA)—have issued their Autumn 2024 Joint Committee Report, highlighting a landscape fraught with economic and geopolitical uncertainties. This comprehensive assessment underscores the pressing need for heightened vigilance across all financial market participants.

The Federal Reserve is set to revise its proposed capital rules for banks, emphasizing a more nuanced, risk-based approach. Michael S. Barr, Vice Chair for Supervision at the Federal Reserve, unveiled these plans in a recent speech at the Brookings Institution, signaling a significant shift in how regulators view bank resilience and risk management.

The European Banking Authority (EBA) has set in motion its annual transparency exercise for 2024, a crucial initiative aimed at assessing the robustness and risk profile of the European banking sector. This yearly undertaking, which has become a linchpin of EU banking supervision since its inception in 2011, seeks to bolster confidence in the EU financial system through enhanced transparency.

In a world where financial headlines often focus on regulations and crises, the nuances of bank supervision often remain under-appreciated. However, Acting Comptroller of the Currency Michael Hsu’s recent remarks at the Joint European Banking Authority and European Central Bank Conference shed light on the vital yet understated role of bank supervision, especially as the financial landscape grows increasingly complex.

The European Commission's Climate Resilience Dialogue has released a comprehensive report that sheds light on the urgent need to narrow the climate protection gap and enhance resilience against the escalating impacts of climate change in Europe. The report, which synthesizes key insights from extensive stakeholder discussions, comes at a critical time as Europe grapples with unprecedented climate challenges.

The European Securities and Markets Authority (ESMA) has published its second risk monitoring report of 2024, sounding a clear alarm about the current state of EU financial markets. This comprehensive assessment underscores the critical need for heightened vigilance across all sectors of the financial industry.

According to a recent Reuters report, citing three people familiar with the matter, major US banks have been found to be in the early stages of assessing and managing climate change risks to their businesses. This information comes from a review conducted by the Office of the Comptroller of the Currency (OCC), which included 22 large banks.