US banking regulators withdraw climate-risk framework, highlighting policy pivot

The Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency jointly announced the withdrawal of their climate-risk principles for large banks, originally issued in 2023. They reasoned existing standards already cover material risks, though critics say the move is politically motivated and raises questions about oversight of climate-related financial risk. The decision was approved by five of seven Fed governors; one dissent warned it may make the system riskier amid growing climate exposures.