Bankers in Europe Push Back as ECB Conducts New ESG Risk Review

The European Banking Federation says lenders in the region won’t be able to compete with their US rivals if regulators continue to pile on ESG rules that Wall Street remains free to ignore.

The warning from the bloc’s main bank lobby comes as the European Central Bank puts pressure on lenders to capture environmental, social and governance risks, including in loan-loss provisions, marking a new frontier in ESG reporting standards.