Thailand's banks and financial sector must act urgently to improve climate risk management in their operations as regulators start to conduct climate risk stress tests across the region, according to PwC.
Led by the central banks of Singapore and Malaysia, regulators in Southeast Asia are tightening the screws on the financial industry by developing regulations and issuing guidelines about environmental risk management. Still, the recent climate risk stress test (CST) conducted by the European Central Bank (ECB) found most banks have not adequately incorporated climate risks into their credit models.
