Razvan Pirnac, FCCA’s Post

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Partner at EY, Financial Services Risk Management Lead

Well, now we are talking. ECB published a paper about a capital buffer linked with the climate risk. This may be the first steps on imposing a capital charge on banks which are not serious enough on climate. Based on the results of the paper, most of the banks would receive a SyRB (Systemic Risk Buffer) of 50bps, while the maximum a bank would receive is 200bps. Cummulated, the SyRB would equal 51 billion EUR. The study covered 107 Significant Institutions from Euro Zone, and is only looking to the transition risk. So, this is only a minimum amount. The "real" amount will be larger. The buffer is depending on the transition risk losses as percentage of RWA. #EY #ClimateRisk #Banking

Designing a macroprudential capital buffer for climate-related risks

Designing a macroprudential capital buffer for climate-related risks

ecb.europa.eu

Eva Garcia-Sicilia

Risk and Portfolio Management/ Treasury / Asset Management/ Internal Control/ Governance/ Surveillance/ Structured Finance/ Investments and banking/ Credit and Market Risk/ Regulation

7mo

Thanks for sharing

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