Regional and Shinkin Banks' Recent Efforts to Address Climate Change (FY2023)
May 31, 2024
Financial System and Bank Examination Department
Bank of Japan
Abstract
With the growing awareness that climate change is a global issue that could have a wide-ranging impact on society and the economy in the future, regional and shinkin banks and their main clients, small and medium-sized enterprises (SMEs), are increasingly taking steps to address climate change on their own accord.
Against this background, regional banks are increasingly supporting their client firms' efforts to address climate change by providing financial and non-financial services, as well as making steady progress in their efforts to comply with regulations and to identify and manage climate-related financial risks. Moreover, shinkin banks, too, are making steady progress in supporting their client firms through the provision of financial and non-financial services.
These efforts allow regional and shinkin banks to gain new business opportunities and reduce their own climate-related financial risks, maintain their competitiveness, differentiate themselves, and strengthen their business foundations.
This paper, in order to serve as a reference for regional and shinkin banks in their efforts to further address climate change going forward, introduces the efforts especially of regional banks to address climate change, focusing on efforts in the area of risk management, and outlines expectations for progress in their climate change responses.
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Financial System and Bank Examination Department
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