FDIC follows OCC with proposed large-bank climate principles

The FDIC requested public comment on draft principles that would provide a high-level framework for institutions over $100 billion in assets to manage exposures to climate-related financial risks.

FDIC Release: The agency said in its release that while the draft principles apply to the largest banks, all financial institutions—regardless of size—may have material exposures to climate-related financial risks.

Background: The agency said the request for comment is substantively similar to one issued by the OCC in December. Comments are due within 60 days of publication in the Federal Register.

ICBA Position: Responding to the OCC request, ICBA applauded the agency for tailoring its principles to large banks but expressed concerns that examiners could eventually apply the framework to community banks.

Hsu Remarks: Acting Comptroller of the Currency Michael Hsu recently said midsize and community banks should begin assessing their climate risk profiles to avoid a “trickle down” effect of large bank climate risk management expectations—appearing to validate ICBA’s concerns.