SBP rolls out ‘shock covering’ measures for banks |
KARACHI: The State Bank of Pakistan (SBP) has introduced a set of shocks covering climate-related risk measures to protect the financial institutions as the threat has been increasing with climate change.
“In pursuance of its goal to further strengthen the risk management capacity of regulated financial institutions (banks, DFIs and MFBs), it has decided to introduce an additional set of shocks covering climate-related risks,” said a circular of the State Bank.
Consequently, Guidelines on Climate Stress Testing are being rolled out. Climate change has emerged as a significant challenge for the domestic economy and the financial system, said the SBP.
Another related circular issued by the SBP said Pakistan is........