Lucas Joins Financial Services Republicans Asking OCC for Clarity on Potential Climate Supervision Proposal

Nov 23, 2021
Press

Cheyenne, OK – Congressman Frank Lucas (OK-03) last week joined House Committee on Financial Services Republicans, led by Ranking Member Patrick McHenry (NC-10), sending a letter to the acting head of the Office of the Comptroller of the Currency (OCC), Michael Hsu. The letter requests the OCC provide clarity on its potential proposal of a climate change related supervision framework for financial institutions.

“Interest regarding the risk of climate change to the financial system and the broader U.S. economy continues to garner attention. Recently you’ve made statements indicating the OCC intends by the end of this year to issue for public comment a framework establishing supervisory expectations for climate risk management for large banks,” wrote the lawmakers.

They continued, “Notwithstanding the OCC’s plans, many financial institutions report they lack necessary data to accurately model climate exposure risk, including in Comprehensive Capital Analysis and Review stress testing or Integrated Assessment Models. We are interested in better understanding how the OCC intends to implement such a framework and the supervisory consequences for banks that would ensue.

“According to climate experts, deep uncertainty exists with respect to the precise geographic and ecological effects of climate change. The economic implications of climate-related geographic and ecological changes are subject to even more uncertainty. Given the substantial uncertainty that exists in this space, it is unclear what criteria the OCC intends to use to forecast climate risk within a financial institution’s portfolio and operations.”

Read the full letter here or below:

 

Lucas Joins Financial Services Republicans Asking OCC for Clarity on Potential Climate Supervision Proposal

Lucas Joins Financial Services Republicans Asking OCC for Clarity on Potential Climate Supervision Proposal

###

 

Recent Posts


Jul 18, 2024
Press

Congressman Lucas Welcomes New Field Representative to District Staff

Yukon, OK – Congressman Frank Lucas (OK-03) today announced an addition to his District Office staff following the hiring of Nathan Dethloff as a Field Representative. Originally from Lone Grove, Oklahoma, Nathan graduated in May of 2022 from Oklahoma State University. Most recently, in May of 2024, he earned a Master of Science in Agricultural […]



Jul 10, 2024
Economy

Lucas and Chair Powell Agree: Bank Regulators Should Re-propose Basel

Washington, DC – Today, Congressman Lucas and Federal Reserve Chair Jerome Powell discussed the need for a re-proposal of Basel Endgame and plans to address inflation. On a Basel Re-proposal: Lucas: “You have reiterated how Members of the Board would like to see a revised Basel proposal put out for public comment, but you’re working […]



Jul 9, 2024
Economy

Secretary Yellen Defers on Basel, Supports Changes to Increase Liquidity in U.S. Treasury Market

Washington, DC – Today, Congressman Lucas followed up with Secretary Yellen on the impact of the Basel Endgame proposal and also potential reforms to increase participation in U.S. Treasury markets. Highlighted Quotes: Lucas: “During our discussion when you were last before the Committee, you largely deferred to the Fed, FDIC, and OCC on the details […]