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flag U.S. regulators rescind climate risk guidance for banks, saying existing rules are sufficient.

flag U.S. federal bank regulators have withdrawn climate-related financial risk guidance for large financial institutions, effective immediately, stating existing safety and soundness rules already require institutions to manage climate risks. flag The move, supported by five of seven Federal Reserve Board members including Chair Jerome Powell and Vice Chair Michelle Bowman, follows a similar step by the Office of the Comptroller of the Currency earlier in 2025. flag Regulators argue current frameworks are sufficient, while critics like Fed Governor Michael Barr warn the repeal could increase financial system vulnerabilities. flag The formal rescission will be published in the Federal Register.

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