ECB supervisors have been increasingly intrusive in probing banks’ exposure to climate risk, first giving lenders a list of expectations, then binding decisions on disclosing and managing risk
International News via Reuters:
The European Central Bank fined Spanish lender ABANCA Corporación Bancaria for failing to comply with its decision on climate-related and environmental risks, it said on Monday.
ECB supervisors have been increasingly intrusive in probing banks’ exposure to climate risk, first giving lenders a list of expectations, then binding decisions on disclosing and managing risk.
The ECB imposed a “periodic penalty” of 187,650 euros after it failed to meet the materiality assessment requirement for 65 days in 2024.
“ABANCA did not sufficiently assess and document materiality of its climate-related and environmental risks before deadline,” the ECB said.
ABANCA may challenge the ECB’s decision before the EU Court of Justice.
Reporting by Balazs KoranyiEditing by Francesco Canepa
