Latest news with #climateRisks
South China Morning Post
3 days ago
- Business
- South China Morning Post
Hong Kong to offer incentives for catastrophe bond issuers, investors as it eyes hub status
The Hong Kong government will offer incentives to attract more issuers and investors to participate in catastrophe bonds in the city to help address growing climate risks. Advertisement 'Hong Kong is the best investment hub for catastrophe bonds because we have capital, financial infrastructure and all the professionals and brokers needed to support the issuance of these products,' said Clement Lau Chung-kin, executive director of policy and legislation at the Insurance Authority, on Friday. Catastrophe bonds, also known as Cat bonds, are insurance-linked securities used by insurers to transfer extreme risks to bond investors – usually pension funds, sovereign investors, family offices and other wealth managers. Since the government unveiled its Cat bond regulatory regime in 2021, seven deals have been completed, with issuers like the World Bank and Peak Reinsurance (Peak Re) raising a total of US$800 million. Insurance Authority's executive director of policy and legislation Clement Lau Chung-kin (left) with associate director of general business Ocean Chiu Wai-yeung. Photo: Enoch Yiu Hong Kong-based Peak Re in April issued its second Cat bond, raising US$50 million to cover earthquakes and typhoon risks in Japan, China and India. That followed a US$150 million issuance in June 2022 to cover typhoon risks in Japan. Advertisement Lau said he would like to see more mainland and international insurers use Hong Kong as a Cat bond issuance hub, noting that currently most of these bonds were issued by US firms in Bermuda.
Bloomberg
16-05-2025
- Business
- Bloomberg
Basel Committee Resists US Pressure to Downplay Climate Risk
US efforts to rein in the Basel Committee's focus on climate risks were met with a rare show of resistance this week, according to people familiar with the matter. At a closed-door meeting that took place on Monday, the heads of the central banks and regulators that make up the Basel Committee on Banking Supervision rejected a proposal to dissolve the taskforce overseeing climate work, said the people, who asked not to be identified disclosing confidential conversations.
Zawya
08-05-2025
- Business
- Zawya
CIBAFI submits recommendations to IFSB on Climate Risk Guidance for Islamic Banks
Manama, Kingdom of Bahrain |The General Council for Islamic Banks and Financial Institutions (CIBAFI) submitted its comments to the Islamic Financial Services Board (IFSB) on the Exposure Draft (ED) (GN-11) on the " Guidance Note on Climate-Related Financial Risks for Institutions Offering Islamic Financial Services (Banking Segment)". Drawing upon expert insights from its diverse membership spanning more than 30 jurisdictions, CIBAFI's review identifies several areas for enhancement in the ED. Key recommendations include: Encouraging RSAs to ensure that IIFS clearly demonstrate how responsibilities for climate-related financial risks are embedded within governance structures, including integration into board committee mandates and structured engagement with Shariah boards. Recommending that IIFS incorporate climate-related objectives into institutional strategies using defined key performance indicators (KPIs) and performance management frameworks to enhance accountability. Supporting the inclusion of internal, measurable climate-related objectives within ICAAPs/ILAAPs, with disclosures—where material—to reinforce transparency and effective capital and liquidity assessments. Recommending more detailed guidance on how IIFS can integrate climate-related risks into their stress testing, ICAAP, and ILAAP frameworks to promote consistency and ensure a level playing field in capital and liquidity adequacy assessments across Islamic banks. Providing more detailed guidance on adapting risk assessment methodologies to the specificities of Islamic contracts, particularly equity-based structures such as musharakah and mudarabah, to ensure alignment with BCBS Principles. Explicitly addressing reputational and liability risks related to climate claims, including potential greenwashing risks, which may also constitute Shariah governance concerns given the ethical commitments of IIFS. Expanding guidance on climate-related disruptions to commodity markets, which are critical to Shariah-compliant liquidity management, by recommending contingency planning measures to support effective implementation of BCBS Principle 10 in the IIFS context. 'These recommendations reflect CIBAFI's ongoing commitment to supporting the development of forward-looking regulatory frameworks that strengthen the resilience of Islamic financial institutions in the face of emerging risks. By addressing climate-related financial risks in a manner consistent with Islamic principles, the proposed enhancements aim to promote effective risk governance, greater transparency, and long-term sustainability across the Islamic financial services industry,' said CIBAFI in its statement. The complete detailed comments submitted to IFSB are available on CIBAFI's website: CIBAFI continues to support the Islamic Financial Services Industry through advocacy, global representation, and various initiatives, including specialised publications and comprehensive professional development programmes. About the General Council for Islamic Banks and Financial Institutions (CIBAFI) CIBAFI is an international organization established in 2001 and Headquartered in the Kingdom of Bahrain. CIBAFI is affiliated with the Organization of Islamic Cooperation (OIC). CIBAFI represents the Islamic financial services industry globally, defending and promoting its role, consolidating co-operation among its members, and with other institutions with similar interests and objectives, with over 140 members from more than 30 jurisdictions, representing market players, international intergovernmental organizations and professional firms, and industry associations.
