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How bank recovery and resolution frameworks can provide a blueprint for transition planning

Author

Listed:
  • Smolenska, Agnieszka
  • Després, Morgan
  • Rozumek, David

Abstract

The unfolding climate crisis is triggering the emergence of new regulatory tools to support banks in the management of risks related to policy, technological and customer behaviour change in the transition to a sustainable low-carbon economy. These, especially transition plans, seek to improve the ability of banks and supervisors to identify, mitigate and manage the short-, medium- and long-term risks associated with climate and environmental risks at the individual institution level and the financial system as a whole. This report draws on the parallels between recovery and transition planning to identify lessons relevant for policymakers and regulators working on bank transition plans, focusing on internal bank governance, supervisory processes and cross-border coordination in the European Union.

Suggested Citation

  • Smolenska, Agnieszka & Després, Morgan & Rozumek, David, 2024. "How bank recovery and resolution frameworks can provide a blueprint for transition planning," LSE Research Online Documents on Economics 129414, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:129414
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    File URL: https://researchonline.lse.ac.uk/id/eprint/129414/
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    References listed on IDEAS

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    1. Chenet, Hugues & Ryan-Collins, Josh & van Lerven, Frank, 2021. "Finance, climate-change and radical uncertainty: Towards a precautionary approach to financial policy," Ecological Economics, Elsevier, vol. 183(C).
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    More about this item

    JEL classification:

    • F3 - International Economics - - International Finance
    • G3 - Financial Economics - - Corporate Finance and Governance
    • N0 - Economic History - - General

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