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THE TREATMENT OF PHYSICAL CLIMATE RISKS BY CENTRAL BANKS
The report examines how central banks in various jurisdictions integrate physical climate risks into banking supervision, highlighting a common shift toward enhancing regulated entities' capabilities rather than immediately adjusting capital requirements. Through case studies of six central banks, it identifies systemic challenges in data availability and technical capacity, advocating for a phased approach to policy implementation. It concludes with a stylised roadmap for the Reserve Bank of India to move from awareness-raising to mainstreaming climate risk assessment in supervisory processes.
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Document type: Report