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OCC Withdraws from Interagency Guidance on Climate-Related Financial Risk

By Sydney Novoa posted 7 days ago

  
On March 31, the Office of the Comptroller of the Currency (OCC) announced its decision to withdraw its guidance to large financial institutions for managing climate-related financial risks.  
 
The interagency guidance, developed in collaboration with the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, had encouraged banks to incorporate climate-related risks into their broader risk management strategies. While non-binding, it offered a framework for institutions with over $100 billion in assets to consider climate risks in areas such as credit, liquidity, and operational risk. 
 
Acting Comptroller of the Currency Rodney E. Hood explained the withdrawal by calling the rule “overly burdensome and duplicative” and citing existing guidance already requiring banks to address such risks. 
 
Despite withdrawing from this specific guidance, the OCC emphasized that banks are still expected to maintain effective risk management processes that align with the size and complexity of their operations.  
 
APGA will continue to monitor this issue and provide updates on any future developments.  
 
For questions on this article, please contact Sydney Novoa of APGA by phone at 202-464-0834 or email at snovoa@apga.org.   

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