Our inability to halt nature’s response to rising global temperatures has forced a global dialogue to which we must turn our attention. Globally, central bankers are trying to integrate issues related to climate change into the monetary policy framework, and are building models to assess the financial implications of climate change. And we must do likewise.
Of course, supervisors of banks using Basel I-based rules in the United States will continue to seek a full understanding of each bank's process for risk measurement and management as part of their usual efforts to fully evaluate a bank's operations. Asking questions about these important management responsibilities is simply a part of appropriate supervisory oversight.