Board of Governors of the Federal Reserve System

Bank safety and soundness is foundational to the stability of the U.S. financial system, and banks are expected to consider and appropriately address material risks to their business models. My view has not changed since 2023: to the extent severe weather events could cause disruptions to specific firms or to the financial system, I would expect that large banks would seek to be proactive in monitoring, assessing, and appropriately addressing such risks. I also believe it is advantageous for the banking industry to have stable, well-understood supervisory expectations. Notwithstanding the Board's decision to rescind these principles, I expect large banks will continue to find value in monitoring their weather-related risks.