Year: 2023
Type: article
Abstract: Climate risks directly affect a wide range of non-financial firms, and indirectly affect the financial institutions that lend to or invest in them. In this paper, we explore the influence of climate risks on financial stability of European financial institutions using network analysis and panel regressions. The determination of interconnectedness variables and the graphical representations of climate networks allow the identification of climate systemic important financial institutions and risk concentrations. Our work contributes to the development of new macroprudential metrics to capture climate risks and address climate-related risk from a systemic perspective. JEL classification Q51, Q54, G21, G22, G28, L14, D85
Source: Finance
Authors: Miia Chabot, Jean-Louis Bertrand, Valentin Courquin
Language: English
Subfield: Finance
Domain: Social Sciences
SDG: Climate action
Open Access status: green
OpenAlex ID: W4390058743