Greening Banks in the Face of Uncertainty On the ECB’s New Supervisory Approach to Environmental and Climate-Related Risks Smoleńska, Agnieszka Author aut van ‘t Klooster, Jens Author aut Text xx# 2020 Verfassungsblog 2020-11-16 eng
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 To this day, banks continue to plough money into carbon-intensive sectors of the economy while making inadequate provisions for potential losses. The European Central Bank’s 2020 draft Guide on climate-related and environmental risks is a major step in supervisory efforts to address this problem, which so far has escaped critical scrutiny. It sets out how the ECB will use its supervisory powers to get banks to properly monitor, disclose and price risk. As we argue, its current approach is unlikely to work because it asks banks to quantify risks that often resist simple quantification. Instead, the ECB should provide banks with more targeted guidance. That will make banking supervision more political than it is today. CC BY-SA 4.0 Smoleńska, Agnieszka funded by the government climate change ECB Green Banking Single Supervisory Mechanism 342 https://staging.verfassungsblog.de/greening-banks-in-the-face-of-uncertainty/ Verfassungsblog 2366-7044 Max Steinbeis Verfassungsblog gGmbH 10.17176/20201116-200312-0 201116 10.17176/20201116-200312-0 Converted from MARCXML to MODS version 3.7 using MARC21slim2MODS3-7.xsl (Revision 1.140 20200717)