Banks ‘being let off hook by weak climate regulation’

Exclusive: campaigners say lack of penalties for dirty assets from Bank of England gives industry little incentive to change

The Bank of England is facing criticism over the way it is conducting its first climate stress tests, with politicians and campaigners warning that a lack of penalties for dirty assets will give banks little incentive to clean up their act.

While the regulator has been praised for committing to the exercise, the Bank of England has come under fire for so far refusing to publish data for individual firms, and stopping short of introducing immediate capital requirements, which would make it more expensive to offer loans and services to fossil fuel companies and high carbon projects.