Banks in Taiwan will undergo mandatory climate change stress tests in 2023 to measure the impact of a range of potential environmental disasters on lenders’ assets.
According to Bloomberg, the content of the tests will be finalised before the end of the year. The Financial Supervisory Commission’s Banking Bureau of Taiwan said it plans to conduct the tests over the first half of 2023 with the results published in June.
The FSC has authorised Taiwan’s banking association to develop the tests which are to be submitted to the regulator for approval by the end of September 2022.
Institutions such as CTBC Financial Holding, Cathay Financial Holding and Fubon Financial Holding have stated that they are already starting to prepare, examine the risks to real estate assets of rising sea levels or to loan portfolios exposed to industries especially vulnerable to climate change.
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