The Banking Executive, Issue 155, November 2021

Bank of England Bank of England STUDIES CLIMATE BUFFERS FOR BANKS The Bank of England said it will study whether banks need to hold capital specifically to cover their risks from climate change. "This work will help determine whether changes to the design, use or calibration of the regulatory capital framework may also be needed to ensure resilience against these risks," the BoE's Pru- dential Regulation Authority said in a statement. "We will provide an update on our approach in 2022 following a call for further research and a confer- ence on climate change and cap- ital requirements." ISSUE 155 NOVEMBER 2021 the BANKING EXECUTIVE 57