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Federal Reserve Rescinds Climate Risk Guidelines for Big Banks

10/19/2025

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Summary

Story summary

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) rescinded guidelines requiring large banks to consider climate risks, effective immediately.
The framework established in 2023 targeted institutions with more than $100 billion in assets.
Critics, including some Federal Reserve governors, warn the move could threaten financial stability amid climate-related threats.

History

Historical Context

The Dodd-Frank Act of 2010 mandated financial institutions to assess risks, including climate factors, to enhance stability amid growing environmental concerns. However, the recent rescission of climate risk guidelines by the Federal Reserve, FDIC, and OCC has raised alarms among critics, reflecting ongoing tensions in climate risk management and its implications for future financial policies and institutional accountability.

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Story summary

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) rescinded guidelines requiring large banks to consider climate risks, effective immediately.
The framework established in 2023 targeted institutions with more than $100 billion in assets.
Critics, including some Federal Reserve governors, warn the move could threaten financial stability amid climate-related threats.

1 / 2