Finance
Banks Start Dropping Clients to Dodge Costs Tied to ESG Risk
- EBA says it’s now seeing clear signs of deleveraging by banks
- Banks that don’t cut their climate risk face capital add-on
Photographer: Eric Taylor/Bloomberg
This article is for subscribers only.
European banks are beginning to drop clients that pose a climate risk rather than face the possibility of higher capital requirements, according to the watchdog overseeing the development.
Banks are raising prices, denying loan requests, “de-selecting industries and in some cases clients,” said Jacob Gyntelberg, director of the economic and risk analysis department at the European Banking Authority.