Bank Negara issues exposure draft on climate risk management for financial institutions

KUALA LUMPUR: Bank Negara Malaysia (BNM) has issued an Exposure Draft on Climate Risk Management and Scenario Analysis, which sets out the proposed requirements and guidance on climate risk management and scenario analysis.

It said the proposed specific requirements and expectations are to ensure that financial institutions strengthen the management of financial risks stemming from climate change to enhance the resilience of the financial sector against climate-related risks and to facilitate an orderly transition to a low-carbon economy.