Climate change may trigger demands for European banks to set aside capital   

ECB says the tests are a chance for the banks and regulator to learn about how vulnerable they are to extreme weather and tougher climate-related laws

Christine Lagarde, President of the ECB: Banks have railed against the idea of the ECB using stress test to roll out new rules to address climate risk.

European banks are concerned that the ECB will use its upcoming climate stress test to raise the bar for capital.

The mass of data banks must soon submit to the central bank could be used to justify higher capital requirements as soon as next year, according to lobbyists representing the industry. Efforts to get clarity from the ECB have been met with a degree of evasiveness, which adds to the level of anxiety, the people said, asking not to be identified discussing private talks.