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Climate Change Financial Risk Act: New Bank Obligations

This act requires the Federal Reserve to analyze how climate change impacts the nation's financial stability. It aims to help banks and other large financial firms better prepare for potential losses from extreme weather events or economic shifts. The goal is to protect citizens' savings and investments from unforeseen climate impacts.
Key points
The Federal Reserve will conduct financial stress tests for large banks to assess their resilience to climate risks like floods or droughts.
An expert group (scientists and economists) will be established to develop climate change scenarios and their economic impacts.
Smaller banks and financial institutions will also be surveyed to assess their readiness for climate challenges, without imposing penalties.
The Financial Stability Oversight Council will regularly assess the overall climate risk to the entire U.S. financial system.
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Expired
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Additional Information
Print number: 117_S_1876
Sponsor: Sen. Schatz, Brian [D-HI]
Process start date: 2021-05-27
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Climate Change Financial Risk Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_1876.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-05-27.

What are the main provisions?

Key points include:

  • The Federal Reserve will conduct financial stress tests for large banks to assess their resilience to climate risks like floods or droughts.
  • An expert group (scientists and economists) will be established to develop climate change scenarios and their economic impacts.
  • Smaller banks and financial institutions will also be surveyed to assess their readiness for climate challenges, without imposing penalties.
  • The Financial Stability Oversight Council will regularly assess the overall climate risk to the entire U.S. financial system.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Schatz, Brian [D-HI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Economy Environment