Waters challenges NCUA to manage climate risk at credit unions

House Financial Services Committee Chairwoman Maxine Waters, D-Calif., is challenging the National Credit Union Administration and other banking regulators to issue guidance requiring institutions to measure and manage climate risk—a thorny issue for the NCUA board.

Waters praised Acting Comptroller of the Currency Michael Hsu for issuing proposed guidance for climate risk supervision at banks with assets over $100 billion in assets. “If finalized, the guidance that these principles are aimed at producing would be historic, representing the first time that a federal banking regulator in the United States acted to require financial institutions to measure and manage climate risk,” she said.

The NCUA board has struggled with the climate issue. Sources said earlier this year that the agency’s Strategic Plan was delayed because of the lack of agreement on the issue. Democrat Todd Harper has been outspoken about his desire to ensure that credit unions address climate risk. However, Republicans Kyle Hauptman and Rodney Hood have been less outspoken and are in a position to block any strong climate statement.

 

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