Climate risks and financial stability: Evidence on the effectiveness of climate-related financial policies

IF 7.5 1区经济学 Q1 BUSINESS, FINANCE

International Review of Financial Analysis Pub Date : 2025-06-14 DOI:10.1016/j.irfa.2025.104304

Paola D’Orazio

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引用次数: 0

Abstract

This paper investigates the impact of climate-related risks on financial stability, focusing on the role of climate-related financial policies. Using a panel dataset of 88 countries from 2000 to 2020, the study examines how physical and transition risks, proxied by CO

_{2}

emissions, climate vulnerability indices, and the Global Climate Risk Index, affect key financial stability indicators, including the Bank Z-score, non-performing loans (NPL) ratio, and liquidity ratio. By incorporating the Climate-Related Financial Policy Index (CRFPI), the analysis contributes to the literature by quantifying the effectiveness of climate-related financial policies in mitigating financial risks. The findings reveal that climate risks increase financial instability. However, countries with stronger climate-related financial policies exhibit greater financial resilience, particularly through lower NPL ratios and improved liquidity conditions. Overall, the results suggest that while CRFPI mitigates financial instability, its impact on solvency risk is less pronounced. Moreover, the effectiveness of these policies shows diminishing returns at higher levels of regulatory intensity. These findings underscore the importance of integrating climate considerations into financial regulatory frameworks while ensuring a balanced approach to policy design.

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气候风险与金融稳定：气候相关金融政策有效性的证据

本文研究了气候相关风险对金融稳定的影响，重点研究了气候相关金融政策的作用。该研究使用2000年至2020年88个国家的面板数据集，研究了以二氧化碳排放、气候脆弱性指数和全球气候风险指数为代表的物理风险和转型风险如何影响关键金融稳定性指标，包括银行Z-score、不良贷款率和流动性比率。通过纳入气候相关金融政策指数（CRFPI），该分析通过量化气候相关金融政策在缓解金融风险方面的有效性来为文献做出贡献。研究结果表明，气候风险增加了金融不稳定。然而，拥有更强有力的气候相关金融政策的国家表现出更强的金融弹性，特别是通过降低不良贷款率和改善流动性状况。总体而言，结果表明，虽然CRFPI减轻了金融不稳定，但其对偿付能力风险的影响不太明显。此外，这些政策的有效性表明，在较高的监管强度水平上，收益递减。这些发现强调了将气候因素纳入金融监管框架的重要性，同时确保政策设计的平衡方法。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Review of Financial Analysis BUSINESS, FINANCE-

CiteScore

10.30

自引率

9.80%

发文量

366

期刊介绍： The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.