Climate-resilient Financial Sector: Climate Scenario Analysis Exercise

Climate scenario analysis is an important tool for central banks, supervisors and financial institutions (FIs) to assess the potential implications of climate change on the financial system. Since 2018, the Monetary Authority of Singapore (MAS) has conducted climate scenario analysis exercises and integrated them into its regular assessment of financial stability. MAS has been engaging FIs to enhance their climate scenario analysis capabilities.

MAS conducted a top-down scenario analysis to assess the potential financial impact of climate transition risks over the period 2023 to 2030. Results are published in the Financial Stability Review 2023.

MAS is currently collaborating with FIs to conduct a climate scenario analysis exercise to assess their vulnerabilities to climate physical risks and strengthen their physical risk assessment capabilities.

Singapore conducts regular climate scenario analysis as part of our assessment on financial stability.