Overview
- The FDIC, OCC, and Federal Reserve on Oct. 16 withdrew their 2023 climate-risk principles for large banks.
- The agencies said the guidance was redundant because banks must already manage all material risks under safety and soundness rules.
- The rescinded framework had applied to institutions with $100 billion or more in assets and encouraged climate-loss scenario planning.
- Federal Reserve Governor Michael Barr dissented, Governor Lisa Cook abstained, and Governors Michelle Bowman and Chris Waller backed the rollback.
- The move fits a broader Trump administration pullback on climate-focused supervision, drawing criticism from advocates who warn of greater financial-system risk.