To nullify certain interagency guidance related to climate-related financial risk management for large financial institutions.
Impact
The passage of HB2923 would have a significant influence on state laws regarding environmental accountability from financial entities. By negating the established guidelines, the bill could lead to a lack of uniformity in how large financial institutions address and report on climate-related risks. This lack of regulatory oversight could potentially create a gap in the responsibilities financial institutions have towards managing their environmental risks, thus altering the landscape of financial regulation in relation to climate change.
Summary
House Bill 2923 aims to nullify specific interagency guidance regarding climate-related financial risk management for large financial institutions. This legislation specifically targets guidance released by the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation in October 2023. By nullifying this guidance, the bill effectively removes regulatory expectations placed on financial institutions concerning their management of climate-related risks, asserting that such guidance should have no effect moving forward.
Contention
Notable points of contention surrounding HB2923 arise from differing perspectives on climate change and financial responsibility. Proponents of the bill, typically aligned with a deregulatory stance, argue that such guidance constitutes an unnecessary burden on institutions, stifling economic growth and innovation. Conversely, opponents, including environmental advocates and some regulatory bodies, maintain that effective risk management pertaining to climate change is crucial for the stability of the financial system and should not be undermined by nullification of established guidelines. The debates surrounding this bill illustrate the broader conflict between regulatory oversight and economic freedoms.
Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Board of Governors of the Federal Reserve System relating to "Principles for Climate-Related Financial Risk Management for Large Financial Institutions".
Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Federal Deposit Insurance Corporation relating to "Principles for Climate-Related Financial Risk Management for Large Financial Institutions".
Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Office of the Comptroller of the Currency relating to "Principles for Climate-Related Financial Risk Management for Large Financial Institutions".