(Bloomberg) -- The Basel Committee on Banking Supervision is pushing back a deadline for climate-risk disclosure by banks, following opposition against earlier proposals by the US Federal Reserve.
The committee, which brings together representatives from regulators and central banks around the world to coordinate rules and oversight of banks, said in a statement on Wednesday that it expects to finalize its so-called Pillar 3 disclosure proposal in the first half of 2025. That’s a change from an earlier plan to publish a revised or final framework in the second half of this year.
While the Committee has said climate change and its associated risks have the potential to affect the “safety and soundness” of individual banks, as well as the “stability of the broader banking system,” the approaches of individual members have varied, causing tension. In September, the Fed refused to endorse a compromise Pillar 3 proposal that had already been watered down to accommodate US concerns, Bloomberg reported this month.
The concessions won by the US left other members of the Basel Committee frustrated, and left some bracing for a scenario in which its work on adding climate considerations to global bank reporting regulations would be shelved indefinitely.
The Committee also said on Wednesday that its members unanimously reaffirmed their expectation of implementing all aspects of the Basel III capital standards for banks in “full, consistently and as soon as possible.”
--With assistance from Nicholas Comfort.
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