BRIEFLY: Fed statement: climate change poses ‘significant challenges’ to financial stability, safety and soundness; FDIC creates office to support ‘mission-driven banks’
(Nov. 5, 2021) Climate change poses “significant challenges” to the safety and soundness of financial institutions and the stability of the financial sector more broadly, the Federal Reserve said in a statement this week. The assertion was issued in the wake of a declaration issued earlier in the week by the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), as part of the international conference (the “Conference of Parties 26” or COP26) held in Glasgow, Scotland, about climate change. “A sustained global response by national authorities, the international community, and the private sector can address the financial and economic implications of climate change,” the Fed statement said … A new Office of Minority and Community Development Banking to support the FDIC’s work with minority depository institutions (MDIs), community development financial institutions (CDFIs), and other “mission-driven” banks was announced this week by the agency. The FDIC said the new office “will further promote private sector investments in low- and moderate-income (LMI) communities.”
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