AP Economics Writer
WASHINGTON (AP) — The nation’s top financial regulators told Congress Friday that threats to U.S. financial stability remain elevated even though the country has recovered from what appears to be the worst economic shocks from the pandemic.
In its annual report on threats to the economy, the Financial Stability Oversight Council highlighted for the first time climate change as an emerging risk, citing among other things potential loan losses from floods and forest fires.
The Biden administration has made climate change a top priority, reversing the decision by the Trump administration to pull the United States out of the Paris climate agreement.
Another emerging threat listed in the council report is cybersecurity. The council argued that more needs to be done to protect banks and other financial institutions from ransomware, malware attacks and data breaches.