The federal agency overseeing the nation’s biggest banks has hired its first climate police officer.
The Comptroller of the Currency announced on Monday that Yue Chen will be the agency’s chief climate risk official. Dr. Chen will focus on developing a new system for assessing climate-related risks for banks and figuring out how to monitor and manage them, the agency said in a statement.
Climate change, including global warming and increasingly severe and unpredictable weather events, is making it harder for banks to figure out how much money to lend for real estate and business transactions and how to price those loans. Advocates of climate-driven financial supervision argue that a catastrophic weather event that causes banks to lose more than expected could threaten the stability of the financial system.
The move to incorporate climate change concerns into financial regulation has been largely driven by Democratic lawmakers who for years Warning on the dangers posed to markets by climate change. At the beginning of his term, President Biden met an extensive team of climate experts inside the White House.
Last year, the OCC appointed one of its bank supervisors to serve as a climate risk officer to urge banks to consider climate risks in their day-to-day operations. The role of Dr. Chena is an extension of that. He will oversee the Climate Risk Regulatory Authority and report directly to the leader of the OCC. The agency is headed by Michael Hsu, Acting Comptroller.
Dr. Chen, known as Nina, has a PhD in chemical engineering from the Massachusetts Institute of Technology. She worked at Wall Street giant Goldman Sachs and the Royal Bank of Canada before becoming director of conservation investments for the nonprofit Nature Conservancy, a job that included raising private funds to help expand. group work.
The OCC position is also not the first role of Dr. Chen as regulator; most recently she was in charge of the newly created Climate Division of the New York State Financial Regulator.
“We are fortunate to have someone with her background and experience in climate finance and financial risk,” Mr Hsu said in claim.