Climate change not 'serious risk' to financial stability, Fed's Waller says
By Howard Schneider
WASHINGTON, May 11 (Reuters) - Climate change does not pose such "significantly unique or material" financial stability risks that the Federal Reserve should treat it separately in its supervision of the financial system, Fed Governor Christopher Waller said on Thursday in a detailed rebuttal of demands for climate initiatives by the U.S. central bank.
"Climate change is real, but I do not believe it poses a serious risk to the safety and soundness of large banks or the financial stability of the United States," Waller told an economic conference in Spain. "Risks are risks ... My job is to make sure that the financial system is resilient to a range of risks. And I believe risks posed by climate change are not sufficiently unique or material to merit special treatment."
The aim of Fed oversight and stress tests of bank balance sheets, he said, was "general resiliency, recognizing that we can't predict, prioritize, and tailor specific policy around each and every shock that could occur."
"In March we watched a bank run on Silicon Valley Bank" that heightened attention to the levels of uninsured deposits at some institutions, Waller said. "Those are the kinds of things I am staring at right now. I am not as worried about climate as I am about things like banks failing because of bank runs."
https://www.reuters.com/markets/us/feds-waller-says-climate-change-not-serious-risk-financial-stability-2023-05-11/
