RBNZ publishes Bulletin article on the use of credit risk weights for climate-related purposes

CSF welcomes the bulletin article released today by RBNZ on the use of credit risk weights for climate related purposes. 

Banks are encouraged to consider how they can best use a combination of qualitative and quantitative approaches, and the role of forward-looking data, in their efforts to better understand the potential nature and scale of climate-related financial impacts. 

Climate disclosure standards and taxonomies globally will support this by improving the availability of historical and forward-looking data. 

Climate risk is financial risk.  

The stability of the Aotearoa NZ financial system requires a shift from backward-looking to forward-looking rules, regulatory and supervisory mechanisms.

This is an important step by RBNZ to build financial system resilience in the face of increasing, unprecedented, complex and dynamic risks presented by climate change.

Building on our collaboration in 2023, we look forward to future opportunities for engagement and further examination of the regulatory framework.