October 8, 2019 / 5:59 AM / 8 days ago

BOE to stress test its financial system against 'climate pathways': Carney

FILE PHOTO: Mark Carney, Governor of the Bank of England (BOE) speaks at the Council on Foreign Relations in New York, U.S., September 10, 2019. REUTERS/Mike Segar

(Reuters) - Bank of England Governor Mark Carney said on Tuesday that the physical impact of climate change will not be evenly distributed, adding that the BoE will be the first regulator to stress test its financial system against various “climate pathways”.

“The Bank will be the first regulator to stress test its financial system against different climate pathways, including the catastrophic business-as-usual scenario and the ideal – but still challenging – transition to net zero by 2050 consistent with the UK’s legislated objective”, Carney said in a speech in Tokyo.

The test is aimed at making the financial system more responsive to changes in climate and to the government’s climate policies, the BoE governor said.

Reporting by Kanishka Singh in Bengaluru; Editing by Shri Navaratnam

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