Bank Negara Malaysia asks financial institutions for a substantial investment on climate risk management

Bank Negara’s announcements relate to climate stress tests, transition to mandatory climate disclosures, and possible Pillar 2 capital / supervisory changesThe acceleration of regulatory action is easier to understand working backwards from 2030 Paris targets to understand the inevitable policy response on climate that is comingRFI research on climate risk in Malaysia called on financial institutions to undertake their own bottom-up, sectoral and issue-based analysis

Some of the most momentous announcements from Malaysia’s Joint Committee on Climate Change (JC3) conference last week came towards the end of Bank Negara Malaysia Governor Nor Shamsiah Mohd Yunus’s speech. She outlined three regulatory moves that she said Bank Negara will be taking in the ‘n...