Latest Insights

Are climate change risks properly captured in the prudential framework?

In March 2021, the European Banking Authority (EBA) was mandated through Article 501c of the Capital Requirements Regulation (CRR) to “assess […] whether a dedicated prudential treatment of exposures related to assets or activities associated substantially with environmental and/or social objectives would be justified”. More simply put, the EBA was asked to investigate whether the current prudential framework properly captures environmental and social risks. In response, the EBA published a Discussion Paper (DP) [1] in May 2022 to collect input from stakeholders such as academia and banking professionals.

Regulatory timelines ESG Risk Management

With the recent avalanche of ESG-related guidance and regulations, it is easy to lose track of the corresponding timelines.

The ECB’s thematic review on climate risks and the focus areas for 2023

The European Central Bank (ECB) recently completed another important step in the supervisory process to assess the management of climate-related and environmental (C&E) risks by European banks. On 2 November, they published the results of their thematic review on C&E risks performed earlier this year.

Interest rate volatility

How can corporates manage interest rate risk?

Following rampant inflation, the cost of borrowing in Europe has increased significantly, by up to 300 basis points for European Investment Grade (IG) corporates this year, largely mimicking moves in the US.

‘The data challenge makes climate risk a very interesting but very complex scope of work’

Sandra Schoonhoven (ING)

Climate change poses a serious and growing threat to the entire world. In the necessary transition to a more sustainable economy, banks can play an important role. This is why sustainability – and climate in particular – is an important theme for ING.