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
Response to FASB on KPIs for Business Entities
On April 30, ISDA submitted a response to the Financial Accounting Standards Board’s (FASB) proposal on financial key performance indicators (KPIs) for business entities. In the response, ISDA addressed the implications of KPI standardization, its potential impact on financial reporting...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
Response on Commodity Derivatives Markets
On April 22, ISDA and FIA submitted a joint response to the European Commission’s (EC) consultation on the functioning of commodity derivatives markets and certain aspects relating to spot energy markets. In addition to questions on position management, reporting and...
Episode 50: The Value of Derivatives
A new report from ISDA shows that companies all over the world use derivatives to alleviate uncertainty, transfer risk and enhance profitability. ISDA discusses the findings with Boston Consulting Group’s Roy Choudhury. Please view this page via Chrome to access...