WASHINGTON—Federal bank regulators on Thursday rescinded their joint guidance on climate-related financial risk management, saying existing safety and soundness rules already require banks to address all material risks, including emerging ones.
The Federal Reserve, FDIC, and OCC jointly announced the withdrawal of the Principles for Climate-Related Financial Risk Management for Large Financial Institutions, which were first issued in October 2023. The agencies said they no longer believe a separate framework for managing climate-related risks is necessary, emphasizing that current supervisory standards require institutions to maintain effective risk management practices suited to their size, complexity, and operations.
The notice, which will appear in the Federal Register, takes effect immediately. The OCC had already withdrawn from the interagency principles earlier this year.