The risks associated with Environmental and Social (E&S) factors are fundamentally changing the risk landscape for banks and financial institutions across the world. On 12 October, the European Banking Authority (EBA) published a report recommending enhancements to the Pillar 1 prudential framework for credit institutions and investment firms, to ensure E&S risks associated with their operations are captured within the current regulatory framework, across all key risk types. In total, 32 policy recommendations are made, covering short and medium term actions for institutions and competent authorities.
Download our paper, which provides an overview of the EBA's recommendations and what institutions should be doing in response.