In another example of the Trump administration reducing regulations on business, the Office of the Comptroller of the Currency withdrew its participation in interagency principles for climate-related financial risk management for large financial institutions, the regulator said on Monday.

"The principles providing guidance to banks for climate-related financial risk are overly burdensome and duplicative," said Acting Comptroller of the Currency Rodney E. Hood. "The OCC’s existing guidance for banks to maintain a sound risk management framework applies to all activities conducted by supervised institutions and includes potential exposures to severe weather events or natural disasters."

The OCC expects all banks to have effective risk management processes commensurate with their size, complexity, and risk of their activities, it added.

In a similar move to reduce regulation, the Federal Deposit Insurance Corp. approved a proposal to rescind its 2024 bank merger policy earlier this month.

Bank stocks had already climbed back into the green before the announcement was made. The KBW Nasdaq Bank Index (BKX) rose 1.3% in late trading, erasing a loss from earlier in the session.

Wells Fargo (NYSE:WFC) stock increased 1.6%, Bank of America (NYSE:BAC) gained 1.3%, Citigroup (NYSE:C) and JPMorgan Chase (NYSE:JPM) increased 1.0%, and Morgan Stanley (NYSE:MS) rose 1.1%.

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