Post by account_disabled on Dec 19, 2023 9:19:25 GMT
PwC advises Thai banks and financial sector to prepare for measuring climate crisis risks PwC advises Thai banks and financial sector Be alert to risk management from the climate crisis arising from business operations. It is likely that the Climate Risk Stress Test will be used in the near future. Point out the regulatory agencies in Singapore-Malaysia Issue recommendations and guidelines for managing risks from environmental changes. Meanwhile, the ECB's CST test found most eurozone banks They do not include climate risk in their lending models. Ms. Su Areewong, consulting partner at PwC Thailand, revealed that the impacts of climate change making regulatory agencies around the world Including countries in Southeast Asia.
Be alert to evaluate changes that will occur from environ Email Data mental factors or climate. with more bank operations The central banks of Singapore[1] and Malaysia[2] have issued recommendations and guidelines for the application of environmental risk factors. Become a part of the bank's risk management. which in theory Navigating Environmental Risks Become an additional factor in managing the risks that the bank already has. This will allow the bank to assess the impact of risks with more accuracy. “The trend of conducting business that takes into account the environment, society, and governance, or ESG, is one of the important dynamics of the world that every sector, including regulatory agencies, is pushing together. Resulting in guidelines, requirements, and various rules and regulations that the business sector must follow in order to find a solution to the global warming problem,” Ms. Su said. At the end of 2021, the Bank of Thailand (BoT) issued an announcement to improve the criteria. Supervision of fund work by the authorities (Pillar 2)[3] by increasing consideration of ESG factors (Environmental, Social and Governance) in the capital risk assessment process.
Although the BoT may not have issued clear guidelines yet, Ms. Su said that the change in the said criteria can be considered a signal of the beginning of a change in the criteria for using ESG factors in management. Future risks of the bank “For Thailand at this time our regulator is probably in the study phase. and consider the guidelines of the BoT will come out as a practice guideline But if evaluated from what neighboring countries have already done. We will likely see the application of Climate Stress Testing or Environment Stress Testing to the Thai banking sector in the near future. Examples of various factors and situations that will be used in stress testing include global warming. and greenhouse gas emissions By this expected change Banks will inevitably have to be more vigilant in managing climate risks,” she said most recently in July. The European Central Bank (ECB) has announced the results of its Climate Risk Stress Test (CST)[4], finding that most banks include climate risk in their Stress testing framework But there is still a lack of efficiency and sufficient information.
Be alert to evaluate changes that will occur from environ Email Data mental factors or climate. with more bank operations The central banks of Singapore[1] and Malaysia[2] have issued recommendations and guidelines for the application of environmental risk factors. Become a part of the bank's risk management. which in theory Navigating Environmental Risks Become an additional factor in managing the risks that the bank already has. This will allow the bank to assess the impact of risks with more accuracy. “The trend of conducting business that takes into account the environment, society, and governance, or ESG, is one of the important dynamics of the world that every sector, including regulatory agencies, is pushing together. Resulting in guidelines, requirements, and various rules and regulations that the business sector must follow in order to find a solution to the global warming problem,” Ms. Su said. At the end of 2021, the Bank of Thailand (BoT) issued an announcement to improve the criteria. Supervision of fund work by the authorities (Pillar 2)[3] by increasing consideration of ESG factors (Environmental, Social and Governance) in the capital risk assessment process.
Although the BoT may not have issued clear guidelines yet, Ms. Su said that the change in the said criteria can be considered a signal of the beginning of a change in the criteria for using ESG factors in management. Future risks of the bank “For Thailand at this time our regulator is probably in the study phase. and consider the guidelines of the BoT will come out as a practice guideline But if evaluated from what neighboring countries have already done. We will likely see the application of Climate Stress Testing or Environment Stress Testing to the Thai banking sector in the near future. Examples of various factors and situations that will be used in stress testing include global warming. and greenhouse gas emissions By this expected change Banks will inevitably have to be more vigilant in managing climate risks,” she said most recently in July. The European Central Bank (ECB) has announced the results of its Climate Risk Stress Test (CST)[4], finding that most banks include climate risk in their Stress testing framework But there is still a lack of efficiency and sufficient information.