Governor Kuroda: Regulations to financial institutions “Needs response based on climate risk” November 28, 17:37
The BOJ Governor Kuroda gave a lecture in Tokyo on the 28th, and since large-scale natural disasters such as Typhoon No. 19 that caused extensive flood damage caused an increase in economic activities and financial aspects, The idea that regulation and supervision for financial institutions will need to be addressed based on climate risk.
On the 28th, BOJ President Kuroda attended a forum held in Tokyo where top financial institutions around the world and central bank officials attended and gave a lecture on international financial regulations.
Among them, President Kuroda touched Typhoon No.19, which flooded many rivers and caused extensive flood damage. “In recent years, severe natural disasters have increased in Japan. And the loss of collateral value could be a major challenge for financial institutions. "
In addition, President Kuroda said, “Climate-related risks have long-term effects and are difficult to foresee,” and pointed out that climate risks have become a challenge alongside responses to cyber attacks and anti-terrorism measures. He expressed the idea that future regulations and supervision of financial institutions will need to be addressed.
The BOJ has been participating in this month's framework to discuss how national financial authorities and central banks will respond to the risks of climate change.
In the future, we will consider necessary regulations while exchanging opinions with each country.