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 <p class="is-style-lead">The European Union is enhancing the European Central Bank’s role to oversee <a rel="dofollow" title="climate" href="https://thebittimes.com/tag/climate.html">climate</a> risks and digital assets in the banking sector.</p> 
 <p>This move comes with the expanding scope of risks facing the banking sector, notably those associated with <a rel="dofollow" title="climate" href="https://thebittimes.com/tag/climate.html">climate</a> change and the burgeoning field of digital assets.</p> 
 <p>Under the new mandate, the ECB’s responsibilities will now encompass overseeing <a rel="dofollow" title="banks" href="https://thebittimes.com/tag/banks.html">banks</a>’ transition <a rel="dofollow" title="strategies" href="https://thebittimes.com/tag/strategies.html">strategies</a> towards a net-zero carbon economy spanning the next three decades. This development places the ECB at the forefront of supervising how <a rel="dofollow" title="banks" href="https://thebittimes.com/tag/banks.html">banks</a> prepare and adapt to environmental changes, which is increasingly seen as critical given the potential financial risks of <a rel="dofollow" title="climate" href="https://thebittimes.com/tag/climate.html">climate</a> change.</p> 
 <p>Moreover, the ECB’s jurisdiction is extended to include the supervision of bank-owned <a rel="dofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> asset services. This change reflects the growing importance of digital assets like Bitcoin (BTC) in the financial landscape and the need for robust regulatory frameworks to manage associated risks, such as money laundering.</p> 
 <div class="cn-block-related-link"> 
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  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> EU opens €800,000 euro tender for crypto climate study 
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 <p>This expansion of powers is expected to bring together the approach of European banking regulators towards <a rel="dofollow" title="climate" href="https://thebittimes.com/tag/climate.html">climate</a>-related issues. Previously, there was tension over how aggressively the ECB should enforce <a rel="dofollow" title="climate" href="https://thebittimes.com/tag/climate.html">climate</a>-related policies, with some board members cautious about overstepping the institution’s mandate.</p> 
 <p>The reform also empowers the ECB to oversee operational leasing businesses owned by banks. While not traditionally at the center of regulatory focus, these businesses present unique challenges, as evidenced by issues like the IT integration at Societe Generale SA’s LeasePlan.</p> 
 <p>Notably, the EU’s decision to strengthen the ECB’s role comes amid a broader context of regulatory adjustments. For instance, there has been a scaling back of international standards for bank capital, initially drafted in response to the 2008 financial crisis. Additionally, the reforms didn’t fully meet the ECB’s expectations regarding the vetting processes for senior bank leadership.</p> 
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> ECB details how the digital euro will future-proof the European market 
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/european-central-bank-to-monitor-banks-climate-and-crypto-strategies-tbt73121.html">https://thebittimes.com/european-central-bank-to-monitor-banks-climate-and-crypto-strategies-tbt73121.html</a></p>

European Central Bank to monitor banks’ climate and crypto strategies

TheBitTimes

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