We therefore expect banks to analyse how C&E risks can or will affect their portfolios and products over the short, medium and long term, and under various scenarios, too. This type of forward-looking analysis of C&E risk should be basic practice, just as it would be for any other type of risk.
Moreover, beyond merely formally attributing responsibilities, we still see banks making little progress towards more actively managing the C&E risks they face. Even certain banks that recognise the materiality of C&E risks have not reported any practices to either reduce or manage their level of risk. This year we want to see firm progress in how banks incorporate C&E risks in their risk management.