The federal bank regulatory agencies have announced the withdrawal of the interagency Principles for Climate-Related Financial Risk Management for Large Financial Institutions. The decision was made because the agencies believe that their current safety and soundness standards already require supervised institutions to have effective risk management practices that match their size, complexity, and activities.
According to the agencies, all supervised institutions are expected to address all material financial risks and remain resilient to a variety of risks, including those that are emerging. The interagency principles were originally issued in October 2023. The withdrawal notice will be published in the Federal Register and takes effect immediately. The Office of the Comptroller of the Currency (OCC) had already withdrawn its participation in the principles earlier this year.
