The German Banking Industry has issued a statement on the Basel Committee on Banking Supervision's (BCBS) discussion paper on the role of climate scenario analysis in strengthening the management and supervision of climate-related financial risks. The discussion paper of the Basel Committee on Banking Supervision deals with application issues relating to climate scenario analyses. These are used to analyze the resilience of business models and the impact of climate-related risk drivers on the risk profile. The German Banking Industry is in favor of an appropriate approach that takes into account the lack of data availability. Benchmark scenarios - such as those of the NGFS - should also be further developed to ensure the required granularity, their applicability over short time horizons, but also their plausibility and explainability.
