Effect of Climate Change on Financial Institutions and the Financial System
Finance, Insurance and Risk Management Theory and Practices, January 2020
6 Pages Posted: 9 Apr 2020
Date Written: 2020
Abstract
Climate change is emerging as an important issue, and has been a cause for increasing uncertainty in the business sector. It is important to understand the effects of climate change events on financial institutions and the financial system. This study analyzes the effect of climate change on financial institutions and the financial system, and show that climate change has serious consequences on the stability of financial institutions through its effect on the counter-parties and clients of financial institutions. Climate change also has serious consequences on the stability of the financial system through its effect on financial institutions.
Keywords: Climate Change, Financial Institutions, Banks, Financial System, Financial Sector
JEL Classification: G21, G28, Q54
Suggested Citation: Suggested Citation