Banking

Central Bank: Climate risk must form part of lending decisions

Financial institutions and other lenders should take into account firms’ ability to manage environmental factors

Sharon Donnery: ‘Our fundamental expectations are that the firm's identify and effectively manage the risks that they're exposed to’

The Central Bank of Ireland (CBI) is calling on financial institutions and other lenders to factor in climate risk when assessing credit applications.

Sharon Donnery, CBI deputy governor, said: “From the point of view of the regulator of the financial sector, our fundamental expectations are that the firm's identify and effectively manage the risks that they're exposed to.

“And I think it's increasingly clear that climate risks both physical and transition are material risks, which ...