In the United States, stress testing is a key supervisory tool and provided the important information about the resilience of large banks during the COVID-19 event. The panel will discuss concerns regarding plausibility of scenarios, and transparency of supervisory projections particularly in areas of vulnerability (e.g., commercial real estate and corporate debt markets), supervisory models and the return to the stress capital buffer framework.

As the global economy evolves to address environmental, social and governance concerns, sustainable finance will play a key role in the transition to a lower-carbon economy.  In addition to pricing the impact of carbon on their businesses, corporations will need taxonomies to describe and measure their actions and public companies will need to disclose to markets what they are doing to support these efforts.  This panel will focus on the principles governing the creation of these taxonomies and current efforts here and abroad to enhance public company disclosure of sustainable finance initiatives.  Finally, the panel will discuss how these developments lay an important foundation for banks in the integration of climate metrics into risk management frameworks to assist in meeting sustainability goals and objectives.