This was the fifth webinar of the series on the revised Core Principles for effective banking supervision.
Climate change introduces physical and transition risks that can impact banks’ safety, soundness, and overall financial stability. The revised Core Principles now explicitly address climate-related financial risks, advocating for a principles-based approach to enhance both supervisory practices and banks' risk management. Banks must understand how these risks could affect traditional financial areas and prepare for long-term impacts. Supervisors are expected to integrate climate risks into their oversight, assess banks' risk management, and require relevant information to evaluate these risks.
The panel discussed the inclusion of climate risk in the updated Core Principles and highlight why both banks and supervisors should adopt flexible practices to address the evolving nature of climate risks.
Panelists:
Elsie Addo Awadzi, Deputy Governor, Bank of Ghana; Board Member, Toronto Centre
Shahin Mahmudzade, Executive Director, Central Bank of the Republic of Azerbaijan
Moderator:
Jean Pesme, Global Director, Finance, Competitiveness & Innovation, World Bank; Board Member, Toronto Centre
Read the transcript here. View their biographies here.
Watch the Webinar: