EFG Magazine

A Financial Stability Oversight Council report could lead to more regulatory action and disclosure requirements for banks.

Treasury Secretary Janet L. Yellen, who leads the Financial Stability Oversight Council, released a report warning about risks to the financial system from climate change.
Treasury Secretary Janet L. Yellen, who leads the Financial Stability Oversight Council, released a report warning about risks to the financial system from climate change. Credit... Stefani Reynolds for The New York Times

Alan Rappeport Christopher Flavelle

Published Oct. 21, 2021 Updated Nov. 4, 2021

WASHINGTON — Climate change is an “emerging threat” to the stability of the U.S. financial system, top federal regulators warned in a report on Thursday, setting the stage for the Biden administration to take more aggressive regulatory action to prevent climate change from upending global markets and the economy.

The report, produced by the Financial Stability Oversight Council, is the clearest expression of alarm to date about the risks that rising temperatures and seas pose to the economy and could herald sweeping changes to the kinds of investments made by banks and other financial institutions.