Assessing banks’ resilience to transition risks: Bank of Russia’s consultation paper
The Bank of Russia announces the start of public consultations on its draft recommendations for banks’ stress testing of risks associated with the global transition from fossil fuels to renewable energy. Potentially, this might create new trade barriers to Russian exports.
The stress testing will allow banks to assess the resilience of their credit portfolios to transition climate risks and identify the most exposed borrowers and sectors. Banks will thus be able to adjust their strategies, portfolio structure, and approaches to interaction with clients in advance, which will improve the overall resilience of the financial system.
The Bank of Russia plans to develop stress testing macroscenarios and provide them to banks. Currently, the baseline scenario assumes that new climate policy measures are not implemented, while technology innovations are integrated slowly. The stress scenario assumes that countries progressively strengthen their climate policy measures, which is accompanied by an accelerated phase-out of hydrocarbons worldwide.
More information is available in the consultation paper On Banks’ Stress Testing of Transition Climate Risks: Draft Recommendations. Please send your feedback and suggestions on the consultation paper to the Bank of Russia through 8 July 2026.