US Regulators End Climate Oversight Framework for Big Banks

Federal regulators will no longer require banks to spell out how they manage climate-related financial risk, following objections from officials in the Trump administration and Republican lawmakers, who said that climate policy was distorting financial regulation. In a joint move announced on Oct. 16, the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency rescinded a set of rules called the Principles for Climate-Related Financial Risk Management for Large Financial Institutions. Introduced in 2023, the rules applied to banks with more than $100 billion in assets and were intended to incentivize institutions to integrate climate considerations into governance, scenario analysis, and risk oversight....