07/07/2026 (Agence Europe) – In a report published on Tuesday 7 July, the NGO Finance Watch issued a warning that banks are underestimating the risks linked to climate change, which is posing a growing threat to the stability of the financial system. The organisation proposes introducing a specific climate macroprudential capital buffer for fossil fuel exposures in order to better cover potential losses linked to the climate transition and extreme weather events. According to its estimates, this measure would require European banks to build an additional capital of 18 billion EUR to address climate risk. Finance Watch recommends that European regulators initially implement this mechanism for fossil fuel-related assets, before gradually extending it to other sectors that are high emitters of carbon. Read the Finance Watch report: https://aeur.eu/f/mr0 (BD)