'Serious prudential risk': How EU banks' climate risk provisions are threatening European financial stability

Cecilia Keating
clock • 6 min read
The European Central Bank building in Frankfurt | Credit: iStock
Image:

The European Central Bank building in Frankfurt | Credit: iStock

European Central Bank has urged banks to step up their climate risk assessments, after major benchmarking exercise reveals sector is poorly prepared for escalating impacts

Climate change presents a toxic cocktail of business model, credit, and operational risks to the banking sector over the short-to-medium term, yet not a single commercial bank in Europe is close to fully...

To continue reading this article...

Join BusinessGreen

In just a few clicks you can start your free BusinessGreen Lite membership for 12 months, providing you access to:

  • Three complimentary articles per month covering the latest real-time news, analysis, and opinion from Europe’s leading source of information on the Green economy and business
  • Receive important and breaking news stories via our daily news alert
  • Our weekly newsletter with the best of the week’s green business news and analysis

Join now

 

Already a BusinessGreen member?

Login

More on Investment

Study: Clean energy remains a key untapped regional investment opportunity

Study: Clean energy remains a key untapped regional investment opportunity

Mayoral Strategic Authorities collectively identify almost £80bn of investment opportunities across infrastructure, housing, and clean energy

Stuart Stone
clock 31 July 2026 • 4 min read
Nesta pulls £120m of investments from Northern Trust over climate backtracking concerns

Nesta pulls £120m of investments from Northern Trust over climate backtracking concerns

UK research and innovation charity foundation transfers £120m of passive global equity portfolio to rival asset manager Amundi

Michael Holder
clock 29 July 2026 • 3 min read
Report: Businesses 'increasingly frustrated' at poor state of England's water supply

Report: Businesses 'increasingly frustrated' at poor state of England's water supply

Aldersgate Group urges government to go further and faster in reforming water sector in order to unlock much needed investment in tackling pollution and boosting climate resilience

Michael Holder
clock 21 July 2026 • 4 min read