How might ESG impact prudential regulatory frameworks?

Prudential frameworks are designed to ensure banks can cope with risks and still remain solvent in the face of economic adversity. Environmental, Social and Governance (ESG) factors have risen up the political and regulatory agenda due to issues such as increasingly extreme weather patterns through to growing concerns over social justice.  Society increasingly expects banks, as capital allocators, to do their bit in helping to fight climate change and to not support certain unethical businesses. This could eventually result in changes to the Basel framework through to the EU's capital requirements regulation and directive (CRR/CRD). This podcast asks whether regulators should use green supporting and brown penalising factors to influence bank lending policies, how stress tests can ensure banks can cope with ESG related scenarios through to how to cope with the fact that there is not enough ESG data to populate bank risk models.  Exploring this topic is Ingalill Asphold, Head of Banking Prudential Regulation, Markets at Finance FInland and Jeroen Van Doorsselaere, Head of Global Product & Platform Management GRC Finance, Risk & Reporting at Wolters Kluwer - Financial Services Solutions  See acast.com/privacy for privacy and opt-out information.

Om Podcasten

This is a series of regular podcasts about financial regulation brought to you by Global Risk Regulator, a Financial Times publication. These podcasts involve discussions with industry experts who share their insights on the latest trends in prudential, markets and conduct regulation.