Experts urge OCC to include climate risk in bank exams

Regulator’s proposed principles are step in the right direction, but still behind Europe.

The Office of the Comptroller of the Currency (OCC) should look to integrate climate risk into its examination process for banks, experts say, following the release of draft guidelines late last year. “Bank examiners look at the safety and soundness of banks, but there isn’t a common standard for climate-related risks,” says Steve Rothstein, managing director at the non-profit Ceres Accelerator for Sustainable Capital Markets. “Climate risk should be incorporated into the examination process.”