Because of the negative effects that climate change could trigger in the financial system, the Board of Directors of the Superintendency of Banks of Panama (SBP) approved Rule 11-2022, dated 1 November 2022, “Whereby number 13 is added to Article 4 of Rule 8-2010 on Comprehensive Risk Management.”
The modification adds the climate risk definition, as a source of financial risk, which aims for banks to be aware of the existence of this type of risk and its derivatives.
The new Rule is the first step towards raising banks’ awareness on the potential source of risk climate change is, in such a way that they consider this risk when designing banking products and services and their lifetime.
For these purposes, banks may rely on the international standards on the matter and the best international practices implemented to guide the processes and actions they must consider for proper climate risk management and administration whose impacts include economic and financial
consequences for any entity or organization.
For further information on this Rule, please visit the following URL address: https://www.superbancos.gob.pa/superbancos/documentos/leyes_y_regulaciones/acuerdos/2022/Acuerdo_11-2022.pdf?v=1.01 (in Spanish)