Regulatory round-up

Welcome back to our regulation tracker, where we aim to monitor policymakers’ latest views and actions on all things sustainable finance – as well as the industry’s response to them

A Bank for International Settlements note has warned national regulators and central banks not to lower capital requirements for green assets or to introduce a green supporting factor. Such so-called Basel Pillar 1 policies are likely to be ineffective and counterproductive in terms of financial stability, say the report authors, who warn of “perverse side effects” for the financial system. However, there is scope for Pillar 2 policies through stress tests and scenario analyses, they say.