Banking and Finance Law Daily Wrap Up, FINANCIAL STABILITY—Treasury’s FIO leaves NGFS, (Jan 31, 2025)
Organizations Mentioned:Federal Insurance Office | Financial Stability Oversight Council
The Federal Insurance Office (FIO) has left the Network of Central Banks and Supervisors for Greening the Financial System.
Following executive action taken by the Trump Administration, the FIO has notified the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) that it is withdrawn its membership. The NGFS was organized to help to meet the goals of the Paris Agreement.
The Federal Insurance Office (FIO) was established under Title V of the Dodd-Frank Act to monitor all aspects of the insurance sector to serve as an advisory member of the Financial Stability Oversight Council and to advise the Treasury Secretary on important national and international insurance matters.
Withdrawal from NGFS was one part of implementing President Trump’s Executive Orders Putting America First in International Environmental Agreements and Unleashing American Energy.
It was noted that the NGFS’s initiatives are “inconsistent with this Administration’s priorities to grow the U.S. economy and American jobs, and NGFS’s role diverges from the traditional technical and coordinating roles of other international fora” and [i]mportant parts of NGFS’s scope, including on monetary policy frameworks, go beyond FIO’s core duties.”
Prior to President Trump’s second inauguration, the Federal Reserve Board withdrew from the NGFS citing the work of the NGFS had increasingly broadened in scope, covering a wider range of issues that are outside the Fed’s statutory mandate. The Federal Deposit Insurance Corporation followed suit and announced its withdrawal from the NGFS (see Banking and Finance Law Daily, Jan. 21, 2025).
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