(Reuters) -Federal Reserve Governor Michael Barr on Thursday said the U.S. central bank needs to ensure that banks are measuring and managing climate-related risk as they do other risks. “I think climate risk is a real risk for us as a society and is likely to be a risk for the financial system unless we […]
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Fed’s Barr says banks must manage climate risk
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(Reuters) -Federal Reserve Governor Michael Barr on Thursday said the U.S. central bank needs to ensure that banks are measuring and managing climate-related risk as they do other risks.
“I think climate risk is a real risk for us as a society and is likely to be a risk for the financial system unless we pay attention to it now,” Barr said in answer to a question at a community development conference at the Cleveland Fed.
“We don’t make climate policy. We don’t want to make climate policy. But our role is to make sure that the institutions we supervise are operating in a safe and sound way. And that means paying attention to how they’re measuring and managing climate-related risks.”
(Reporting by Ann Saphir; Editing by Chris Reese)