Gustavo Bernal Torres
Assessing Climate Change Risks To Canada's Financial System
The Bank of Canada and the Office of the Superintendent of Financial Institutions (OSFI) completed their climate scenario analysis pilot in collaboration with six Canadian federally regulated financial institutions.
The pilot has fully met its goals of (i) building the capability of authorities and participating financial institutions to do climate transition scenario analysis, (ii) supporting the Canadian financial sector in improving its assessment and disclosure of climate-related risks and (iii) contributing to the understanding of the potential exposure of the financial sector to climate transition risk.
In line with the objectives of the pilot, the Bank has developed a set of global climate transition scenarios to capture a range of risk outcomes that could be stressful to the Canadian economy and the financial system.