The Regulatory Perspective

Gianluca Santilli ()
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Gianluca Santilli: University of Milan

Chapter Chapter 3 in Climate Risks in the Banking Industry, 2025, pp 61-89 from Springer

Abstract: Abstract This chapter examines how financial authorities around the world are integrating climate-related risks into their prudential frameworks. It analyses the unique regulatory challenges posed by climate risks—their extended time horizons, non-linear nature, and systemic implications—and assesses the microprudential and macroprudential approaches being implemented in different jurisdictions. The comparative analysis reveals significant divergence in regulatory responses, with the EU leading the way with comprehensive frameworks, while the US shows policy uncertainty. Despite different regulatory approaches, a consensus is emerging on disclosure requirements, scenario analysis, and governance expectations, although significant challenges remain in terms of data quality and methodological standardisation.

Keywords: Climate data; Microprudential; Macroprudential; Financial stability; Supervisory expectations (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-95808-3_3

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DOI: 10.1007/978-3-031-95808-3_3

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