Kathmandu, April 28 -- Banks are exposed to a complex risk environment because of the climate crisis the world over. With their diverse asset class portfolios across multiple sectors, banks are vulnerable to new risks involving loan portfolios, investments, and business operations.

Banks need proactive approaches to plan transitions to a more resilient and sustainable future, while analysing the immediate effects of climate disasters. Developing appropriate methods to manage these risks while trying to remain competitive should be the priority of all banks.

Banks in Nepal face both transitional and physical risks because of the impact of climate change. They must evaluate how these hazards may interact and intensify, since the risk fac...