Research | Right direction, wrong equipment: Why transition risks do not fit into regulatory stress tests
Right direction, wrong equipment: Why transition risks do not fit into regulatory stress tests

Right direction, wrong equipment: Why transition risks do not fit into regulatory stress tests

21 September 2017

The authors of this report explore the challenges of integrating climate-related risks into regulatory stress tests. They demonstrate that supervisory risk assessment frameworks struggle to capture long-term systemic risks, and offer recommendations for developing a ‘long-term risk;’ supervision ‘infrastructure.’

 

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