Fed-led climate scenario analysis highlights data gaps, insurance costs | News Brief

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The analysis, released Thursday, was intended to help “learn about large banking organizations’ climate risk management practices and challenges and to enhance the ability of large banking organizations and supervisors to identify, estimate, monitor, and manage climate-related financial risks,” according to its executive summary.

Banks participating in the exercise included Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo.

“Most participants relied on existing credit risk models to estimate the impact of physical and transition risks on their portfolios,” the summary stated, “and assumed that historical relationships between model inputs and outputs continue to hold as the…

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