Iceland Financial Sector Assessment Program-Technical Note on Management and Supervision of Climate-Related Financial Risks in the Banking Sector

This technical note on Iceland presents analyses management and supervision of climate-related financial risks in the banking sector. The Icelandic authorities are committed to addressing climate change issues and reaching ambitious objectives to reduce greenhouse gas emissions. Domestic coordinatio...

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Bibliographic Details
Corporate Author: International Monetary Fund Monetary and Capital Markets Department
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2023
Series:IMF Staff Country Reports
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Banks 
653 |a Finance 
653 |a Environmental Economics 
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653 |a Exports and Imports 
653 |a Mortgages 
653 |a International organization 
653 |a International institutions 
653 |a Global Warming 
653 |a Capital and Ownership Structure 
653 |a Credit risk 
653 |a Financial risk management 
653 |a Goodwill 
653 |a International Economics 
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653 |a Financial Risk and Risk Management 
653 |a Financing Policy 
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653 |a International Organizations 
653 |a Natural Disasters and Their Management 
653 |a Monetary economics 
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653 |a General Financial Markets: Government Policy and Regulation 
653 |a International agencies 
653 |a Micro Finance Institutions 
653 |a Long-term Capital Movements 
653 |a External position 
653 |a External balance assessment (EBA) 
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653 |a Banks and Banking 
653 |a Financial regulation and supervision 
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520 |a This technical note on Iceland presents analyses management and supervision of climate-related financial risks in the banking sector. The Icelandic authorities are committed to addressing climate change issues and reaching ambitious objectives to reduce greenhouse gas emissions. Domestic coordination with the Central Bank of Iceland (CBI) should be enhanced to support adequate consideration of climate-related financial risks within the financial sector. CBI should as soon as possible address the data quality and availability issues on climate-related financial risks. CBI has started to incorporate climate-related financial risks within the macroprudential surveillance and supervisory processes. The intensity and thoroughness of systematic supervision of climate-related financial risks within the banking sector should be gradually increased. In addition, banks should fully incorporate climate-related financial risks into their risk management frameworks in addition to their commendable efforts toward transparency. Finally, CBI should determine whether banks’ capital and liquidity buffers are adequate to cover climate-related financial risks