ECB Cracks Down on Risks From Buyouts to Climate Under Buch

Half a year into her tenure as chair of the European Central Bank’s supervisory board, Claudia Buch is destroying any hopes executives may have had for a cozier relationship with the region’s top bank regulator.

Under Buch, the ECB is set to fine several banks over their protracted failures to deal with potential fallout from climate change. Profits of other lenders could be dented by demands that they set aside money for losses on loans to commercial real estate developers, and by a review of the risks they take lending to heavily indebted companies.