Bank of England studies climate buffers for banks

This work will help determine whether changes to the design, use or calibration of the regulatory capital framework may also be needed to ensure resilience against these risks

  
Pedestrians shelter under umbrellas in front of the Royal Exchange and the Bank of England, in London, Britain August 16, 2018.

Pedestrians shelter under umbrellas in front of the Royal Exchange and the Bank of England, in London, Britain August 16, 2018.

Reuters/ Hannah McKay

The Bank of England said on Thursday it will study whether banks need to hold capital specifically to cover their risks from climate change.

"This work will help determine whether changes to the design, use or calibration of the regulatory capital framework may also be needed to ensure resilience against these risks," the BoE's Prudential Regulation Authority said in a statement.

"We will provide an update on our approach in 2022 following a call for further research and a conference on climate change and capital requirements."

(Reporting by Huw Jones; Editing by Ana Nicolaci da Costa)


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