The Federal Deposit Insurance Corporation issued supervisory guidance announcing that it, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency are jointly rescinding the interagency Principles for Climate-Related Financial Risk Management for Large Financial Institutions, effective immediately. The principles, issued on October 30, 2023, were intended for financial institutions with more than USD 100 billion in total consolidated assets. The agencies emphasised that existing safety and soundness standards already require all supervised institutions to maintain risk management processes commensurate with their size, complexity, and risk profile and to consider and address all material risks in their operating environment, including emerging risks. They concluded that dedicated climate-related financial risk principles are unnecessary and could distract from managing other risks through existing risk management processes and the agencies’ other rules and guidance.
Federal Deposit Insurance Corporation 2025-10-16
United States Federal Deposit Insurance Corporation joins Federal Reserve and OCC in rescinding climate-related financial risk management principles for institutions over USD 100 billion
The Federal Deposit Insurance Corporation, the Federal Reserve Board, and the Office of the Comptroller of the Currency have rescinded the Principles for Climate-Related Financial Risk Management for institutions with over USD 100 billion in assets. They deemed these principles unnecessary, as existing standards already require comprehensive risk management, and noted that dedicated climate-related principles could detract from managing other risks.