WASHINGTON, D.C. – Six US banking giants reported having 'significant' challenges when estimating the financial risks from climate change because of a lack of good data, the Federal Reserve said on Thursday.The six large banks, including Bank of America, Citigroup and Goldman Sachs, participated in the 2023 pilot conducted by the US central bank in order 'to explore the resiliency of their business models to climate-related financial risks,' the Fed said in a statement.
The US central bank stressed that the 'exploratory' exercise would not have any consequences for bank capital requirements or lead to any supervisory changes.Nevertheless, it marks a rare foray into the topic of climate change for the independent US central bank — which has looked to avoid what is still a divisive political issue in the United States.