Bank Management And Financial Services 8th Edition Pdf Free Download

[Kristin Dampeer]

BankManagement and Financial Services, now in its ninth edition, is designed primarily for students interested in pursuing careers in or learning more about the financial services industry. It explores the services that banks and their principal competitors (including savings and loans, credit unions, security and investment firms) offer in an increasingly competitive financial-services marketplace.

We live in a complex world in which crises proliferate and magnify risks to our financial system. Climate change is increasing the frequency and intensity of extreme weather events, resulting in property damage, business disruption, and the devaluation of investments and other assets. To continue to thrive in the face of global competition, it is essential that New York financial institutions integrate consideration of the financial risks from climate change into their governance frameworks, risk management processes, and business strategies and start developing their approach to climate-related financial disclosure.

Because of the importance of this issue, DFS has joined the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), a group of central bankers and supervisors committed to managing financial risks from climate change globally, and the Sustainable Insurance Forum (SIF), an international network of insurance supervisors dedicated to helping the global insurance industry meet the challenges posed by climate change. DFS intends to continue engaging with all stakeholders to develop expert guidance in this critical area.

On December 21, 2023, DFS issued Guidance for New York State Regulated Banking and Mortgage Institutions Relating to Management of Material Financial and Operational Risks from Climate Change. The Guidance covers New York State-regulated banking organizations, New York State-licensed branches and agencies of foreign banking organizations, and New York State-regulated mortgage bankers and mortgage servicers.

Prior to issuance of this guidance, DFS carefully considered all feedback received from regulated entities and other key stakeholders on the proposed Guidance published in December 2022. In response to feedback, the Department has published resources to assist organizations as they work to adopt measures that address their climate-related risk.

On January 11, 2024, DFS hosted a webinar which provided an overview of the Guidance and key changes made after consideration of public feedback on the proposed guidance issued in December 2022. Resources from that webinar can be found in the Webinars & Events section below.

On October 29, 2020, DFS issued an Industry Letter outlining its expectations related to addressing the financial risks from climate change to all New York-regulated banking organizations, branches and agencies of foreign banking organizations, mortgage bankers and servicers, and limited purpose trust companies, as well as New York-regulated non-depositories (other than New York-regulated mortgage bankers, mortgage servicers, and limited purpose trust companies), including New York regulated money transmitters, licensed lenders, sales finance companies, premium finance agencies, and virtual currency companies.

On February 9, 2021, DFS issued an industry letter alerting banking institutions subject to the New York Community Reinvestment Act that they may receive credit for financing activities that support the climate resiliency of low- and moderate-income, and underserved communities.

On November 15, 2021, DFS issued final Guidance for New York Domestic Insurers on Managing the Financial Risks from Climate Change, detailing the Department's expectations related to insurers' management of the financial risks from climate change. After issuing proposed guidance in March, DFS received comments from a broad range of stakeholders, including insurers, trade groups, consumer advocates, climate experts, rating agencies and other financial regulators. The final guidance reflects the Department's careful consideration of all comments received.

The guidance was informed by an ongoing dialogue with the insurance industry and international regulators and is based on New York Insurance Law, National Association of Insurance Commissioners manuals, and the work of international regulators and networks. Building on an earlier Insurance Circular Letter on Climate Change and Financial Risks sent to to all New York-regulated domestic and foreign insurance companies outlining its expectations related to addressing the financial risks from climate change, the guidance sets out the Department's expectations that all New York insurers start integrating the consideration of the financial risks from climate change into their governance frameworks, business strategies, risk management processes and scenario analysis, and developing their approach to climate-related financial disclosure.

On September 22, 2020, DFS issued Circular Letter No. 15 (2020) to all New York-regulated domestic and foreign insurance companies outlining its expectations related to addressing the financial risks from climate change.

The Circular Letter is addressed to all New York domestic and authorized foreign insurers. DFS believes that addressing the financial risks from climate change is critical to the solvency and liquidity of the insurance industry. DFS oversight over domestic and authorized foreign insurers, however, is not identical.

DFS encourages insurers to consider the financial risks from climate change as they perform their ORSAs but understands that it will take time for companies to include climate considerations in their ORSAs where appropriate. Refer to the Guidance for New York Domestic Insurers on Managing the Financial Risks from Climate Change for more information on expectations regarding ORSAs.

The TCFD has become a globally adopted framework by regulators and industry alike. Since 2019, insurers may submit TCFD reports in lieu of responding to the NAIC Climate Risk Disclosure Survey, which some insurers have done. DFS understands that the four major components of TCFD (governance, strategy, risks, and metrics and targets) require different levels of sophistication and resources to complete. As such, DFS will continue to engage with industry participants on implementation of the various TCFD components. Refer to the Guidance for New York Domestic Insurers on Managing the Financial Risks from Climate Change for more information on DFS expectations regarding public disclosure.

This update provides a comparison of rating levels achieved for each TCFD pillar over the reporting years 2019-2021 and shows that the most improvement occurred in ratings of governance-related disclosures. A key factor in that development was that the Department had set an August 15, 2022 implementation timeline for guidance expectations relating to governance.

DFS hosted a webinar on January 11, 2024 to provide an overview of the Guidance for New York State Regulated Banking and Mortgage Institutions Relating to Management of Material Financial and Operational Risks from Climate Change issued by DFS. The webinar also covered key changes made after consideration of public feedback on the proposed guidance issued in December 2022.

DFS hosted a webinar on November 22, 2021 which provided an overview of the insurance guidance, changes made to the proposed guidance that was issued for public comment, and the rationale for those changes.

A webinar provided information to support insurers in implementing the expectations set forth in the Guidance. The insurers on the panel shared their experiences in integrating the consideration of the financial risks from climate change into their governance and organizational structure, and discussed how the structure influenced their management of climate-related risks and opportunities. The Geneva Association, an international think tank focused on strategically important insurance and risk management issues, provided a global perspective on the topic

This webinar provided support to help insurers understand and assess the data and tools needed to manage climate related risks and opportunities. The insurers on the panel shared information about climate data currently available in the market, their experiences selecting the right data and tools for their unique objectives, and views on how they assess their climate data needs throughout different phases of their climate risk journeys. The Principles for Responsible Investment, a United Nations-supported international network of investors, provided a global perspective on the topic.

This first seminar in the DFS Climate Change Seminar Series focused on why insurers should care about climate change. Insurers of different sizes and at different stages of the journey of managing the financial risks from climate change shared their experiences, motivations, and challenges. The United Nations Principles for Sustainable Insurance provided a global perspective.

Disclosure and risk management are essential components of managing the financial risks from climate change. This panel of insurers have undertaken voluntary disclosure efforts and started incorporating climate change into their risk management frameworks. In this session, they explained what they have done and learned in the process and how others might get started as well. Ceres - a corporate sustainability think tank, provided a perspective beyond the insurance industry on these topics.

You cannot manage what you cannot measure. What are the meaningful metrics for insurers to measure the financial risks from climate change? Given the complexity and uncertainty surrounding climate change, where should companies start? What targets are being set by the leaders in this space? This session explained what they have done and learned in the process and how others might get started as well. 2 Degrees Investing Initiative, a non-profit think tank, provided a global ad multi-sector perspective on these topics.

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