Climate change and Banking regulation: How Swedish professionals think about regulating climate-related risk drivers
(2022) FMIM01 20221Environmental and Energy Systems Studies
- Abstract (Swedish)
- Syfte: Denna masteruppsats ämnar att deskriptivt beskriva hur bankanställda och experter på bankregleringsområdet ser på de regleringen av de finansiella risker som härrör från klimatförändringarna.
Material och metod: Semistrukturerade expertintervjuer genomfördes med fem bankanställda från svenska banker av olika storlek samt med fyra experter på bankreglering och en expert på översvämningar och havsnivåhöjning. Artiklar har samlats in med bakåtgående snöbollsteknik medan rapporter från myndigheter har samlats in på ett systematiskt sätt.
Resultat: För närvarande är bankreglering fokuserad på området regelgivning och är mer specifikt centrerad kring harmonisering av rapporteringskrav. Både privata och offentliga organisationer... (More) - Syfte: Denna masteruppsats ämnar att deskriptivt beskriva hur bankanställda och experter på bankregleringsområdet ser på de regleringen av de finansiella risker som härrör från klimatförändringarna.
Material och metod: Semistrukturerade expertintervjuer genomfördes med fem bankanställda från svenska banker av olika storlek samt med fyra experter på bankreglering och en expert på översvämningar och havsnivåhöjning. Artiklar har samlats in med bakåtgående snöbollsteknik medan rapporter från myndigheter har samlats in på ett systematiskt sätt.
Resultat: För närvarande är bankreglering fokuserad på området regelgivning och är mer specifikt centrerad kring harmonisering av rapporteringskrav. Både privata och offentliga organisationer är involverade i detta arbete. Det finns många osäkerheter, komplexiteter och andra frågor som tillsynsmyndigheter försöker förstå för att komma vidare med reglering inom andra områden som regelgivning med kapitalkrav eller bättre tillsyn. Det råder oenighet bland intervjupersoner om vissa saker, som när fysiska risker kommer att materialiseras eller framtida tillgång till försäkring. Intervjuobjekten är ense om att regleringen bör vara riskbaserad.
Slutsats: Tillsynsmyndigheter arbetar för närvarande med att harmonisera rapporteringskrav. Det finns flera svårigheter som gör det svårt att ta full hänsyn till riskerna härrörande från klimatförändringar. När ny reglering tas fram, så anser professionen att den ska vara riskbaserad. (Less) - Abstract
- Purpose: This master thesis aims to describe how bank employees and experts in the field of banking regulation view the regulation of financial risks incorporating climate-related risk drivers.
Material and method: Semi-structured expert interviews were conducted with five bank employees from Swedish banks of various sizes, as well as with four experts on banking regulation and one expert on floods and sea level rise. Articles have been collected using a backward snowball technique, while reports from authorities have been collected systematically.
Results: Currently, banking regulation is focused on the area of rulemaking and is more specifically centered around the harmonization of reporting requirements. Both private and public... (More) - Purpose: This master thesis aims to describe how bank employees and experts in the field of banking regulation view the regulation of financial risks incorporating climate-related risk drivers.
Material and method: Semi-structured expert interviews were conducted with five bank employees from Swedish banks of various sizes, as well as with four experts on banking regulation and one expert on floods and sea level rise. Articles have been collected using a backward snowball technique, while reports from authorities have been collected systematically.
Results: Currently, banking regulation is focused on the area of rulemaking and is more specifically centered around the harmonization of reporting requirements. Both private and public organizations are involved in this work. There are many uncertainties, complexities, and other issues that regulators are trying to understand to move forward with the regulation in other areas, such as prudential regulation with capital requirements or better supervision. There is disagreement among interviewees about certain things, such as when physical risks will materialize or future access to insurance. However, the interviewees agree that regulation should be risk-based.
Conclusion: Regulators are currently working to harmonize reporting requirements. Several difficulties make it challenging to fully account for the risks arising from climate change. When a new regulation is developed, the profession considers it should be risk-based. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9101460
- author
- Gustafsson, Jakob LU
- supervisor
- organization
- course
- FMIM01 20221
- year
- 2022
- type
- H3 - Professional qualifications (4 Years - )
- subject
- keywords
- Climate-related risk drivers, physical risk, transition risk, financian risk, banking regulation, interview study
- report number
- LUTFD2/TFEM-22/5186--SE +(1-59)
- ISSN
- 1102-3651
- language
- English
- id
- 9101460
- date added to LUP
- 2022-10-10 12:59:14
- date last changed
- 2022-10-10 12:59:14
@misc{9101460,
abstract = {{Purpose: This master thesis aims to describe how bank employees and experts in the field of banking regulation view the regulation of financial risks incorporating climate-related risk drivers.
Material and method: Semi-structured expert interviews were conducted with five bank employees from Swedish banks of various sizes, as well as with four experts on banking regulation and one expert on floods and sea level rise. Articles have been collected using a backward snowball technique, while reports from authorities have been collected systematically.
Results: Currently, banking regulation is focused on the area of rulemaking and is more specifically centered around the harmonization of reporting requirements. Both private and public organizations are involved in this work. There are many uncertainties, complexities, and other issues that regulators are trying to understand to move forward with the regulation in other areas, such as prudential regulation with capital requirements or better supervision. There is disagreement among interviewees about certain things, such as when physical risks will materialize or future access to insurance. However, the interviewees agree that regulation should be risk-based.
Conclusion: Regulators are currently working to harmonize reporting requirements. Several difficulties make it challenging to fully account for the risks arising from climate change. When a new regulation is developed, the profession considers it should be risk-based.}},
author = {{Gustafsson, Jakob}},
issn = {{1102-3651}},
language = {{eng}},
note = {{Student Paper}},
title = {{Climate change and Banking regulation: How Swedish professionals think about regulating climate-related risk drivers}},
year = {{2022}},
}