March 20, 2019 / 9:54 AM / a month ago

Australia bank regulator expects climate to be included in risk management

A boat passes under the Sydney Harbour Bridge and in front of the Sydney Opera House as strong winds and heavy rain hit the city of Sydney, Australia, November 28, 2018. REUTERS/David Gray

SYDNEY (Reuters) - Australia’s banking regulator said on Wednesday it expects lenders and insurers to include climate as one of the material risks they manage to ensure they meet obligations to depositors and policy holders.

“APRA has advised that these risks are material, foreseeable and actionable now,” the Australian Prudential Regulatory Authority (APRA) said in a statement.

The move follows comments by a senior central banker this month, who said climate modeling should start to be mapped into the Reserve Bank of Australia’s economic scenarios.

Reporting by Paulina Duran; Editing by Christopher Cushing

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