On June 3, 2022, ISDA and the Securities Industry and Financial Markets Association submitted a joint response to the Federal Deposit Insurance Corporation (FDIC) on the principles for climate-related financial risk management for large banks. The associations welcome the FDIC’s principles-based approach to addressing risk management practices related to climate risk, and support the FDIC’s efforts to establish regulatory principles and guidance for new and emerging climate-related financial risks that align with the existing risk management regulatory framework.
In the context of climate-related financial risk, member bank risk management practices have centered on the identification and evaluation of potential climate-related financial risks under different scenarios, specifically focusing on assessing potential materiality for different risks over various time horizons. These efforts have helped identify some inadequacies and challenges, including data limitations and complexities arising from a variety of different scenarios and time horizons. ISDA’s members are committed to maintaining the safety and efficiency of the US financial markets and recognize that banks have a big role to play in the management of climate-related financial risks.
Documents (1) for ISDA and SIFMA Respond to FDIC on Climate-related Financial Risk Management for Large Banks
Latest
Expanding the Universe of Eligible VM
ISDA conducted a series of interviews with buy- and sell-side firms to understand the drivers of a growing use of non-cash assets as variation margin (VM) for non-cleared over-the-counter (OTC) derivatives and the barriers that remain to expanding the use...
ISDA Response on Hedge Accounting Guidance
On August 14, ISDA responded to an exposure draft from the Financial Accounting Standards Board (FASB). ISDA broadly supports the FASB’s proposed targeted improvements to hedge accounting, including allowing interest rate hedging of held-to-maturity (HTM) debt securities, recognizing all Secured...
Joint Response to EBA Consultation
On August 12, ISDA and the Association for Financial Markets in Europe (AFME) responded to the European Banking Authority’s discussion paper on certain taxonomy key performance indicators (KPIs) and other aspects of the Disclosures Delegated Act under Article 8 of...
Response to JSCC on Clearing Fund Consolidation
On August 12, ISDA responded to the Japan Securities Clearing Corporation’s (JSCC) consultation on its proposal to consolidate clearing fund consumption, calculation and deposit segmentation across six clearing qualifications under the Financial Instruments and Exchange Act. ISDA members broadly support...