There is growing acknowledgement among policymakers that climate change may give rise to potentially catastrophic financial risk and impact financial stability. This chapter explores the specific features of climate-related financial risks (CRFR), drawing on a growing body of macrofinancial literature and...
Climate change is becoming increasingly critical for global economic development and financial stability. This study uses the Tail Event-driven Network (TENET) method to integrate a Climate Change Attention index, derived from China Central Television News, into a risk contagion network to examine how...
Using a stock-flow-fund ecological macroeconomic model, we analyse (i) the effects of climate change on financial stability and (ii) the financial and global warming implications of a green quantitative easing (QE) programme. Emphasis is placed on the impact of climate change damages on the pri...
Climate change and financial systemic risk: Evidence from US banks and insurers 2023, Journal of Financial Stability Citation Excerpt : From a policy perspective, the absence of well-established knowledge about their effects on real economy and financial markets and institutions makes the design of gr...
Breaking the Tragedy of the Horizon—Climate Change and Financial Stability (Bank of England, 2015). Villeroy de Galhau, F. Climate Change: The Financial Sector and Pathways to 2°C (Banque de France, 2015). Signorini, L. F. The Financial System, Environment and Climate: A Regulator’s ...
"We now do recognize that climate change is a systemic risk," McCarthy said. "We have to look fundamentally at the way the federal government does its job and how we look at the finance system and its stability." RELATED:
important framework that guides our work in identifying, managing, and disclosing the risks and opportunities associated with climate change. This work also highlights the relationship between climate change and systemic risk, and how acting responsibly in line with public interests can mitigate risk. ...
The distribution of financial ownership and exposure to loss risk remains insufficiently understood. Asset stranding is the process of collapsing expectations of future profits from invested capital (the asset) as a result of disruptive policy and/or technological change7,8. This loss of value in ...
Climate change poses a major risk to the stability of the U.S. financial system and to its ability to sustain the American economy . . . A major concern for regulators is what we don’t know.” This is the message of a report titled Managing Climate Risk in The U.S. Financial ...
At the same time, investors havecalled on US regulatorsto address climate change as a systemic financial risk. The subcommittee’sreportwas the first from a government entity to examine the threats that a changing climate posed to US financial stability, said Rostin Behnam, the CFTC commissioner ...