Climate risk and bank stability: International evidence

IF 2.9 3区经济学 Q2 BUSINESS, FINANCE

Journal of Multinational Financial Management Pub Date : 2023-10-19 DOI:10.1016/j.mulfin.2023.100824

Anh-Tuan Le , Thao Phuong Tran , Anil V. Mishra

引用次数: 0

Abstract

The paper studies the association between climate risk and bank stability. Using an international sample of 6433 commercial banks in 109 countries between 2005 and 2019, we illustrate that increased climate risk leads to decreased bank stability. These findings are robust to alternative bank stability measures and after controlling for endogeneity by an instrumental variable and system GMM approach. Further analysis shows that the negative impact of climate risk on bank stability is more pronounced in small banks and banks that have low capital. In addition, we also find better institutional governance, bank supervision, and regulations can eliminate the adverse impact of climate risk. Our results are neither determined by the effect of the financial crisis nor by the heterogeneity of different regions. Overall, our findings add a novel determinant of bank stability globally.

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气候风险与银行稳定性:国际证据

本文研究了气候风险与银行稳定性之间的关系。利用2005年至2019年109个国家6433家商业银行的国际样本，我们发现气候风险增加导致银行稳定性下降。通过工具变量和系统GMM方法控制内生性后，这些发现对替代银行稳定性措施具有鲁棒性。进一步分析表明，气候风险对银行稳定性的负面影响在小银行和低资本银行中更为明显。此外，我们还发现，更好的机构治理、银行监管和法规可以消除气候风险的不利影响。我们的结果既不是由金融危机的影响决定的，也不是由不同地区的异质性决定的。总的来说，我们的发现为全球银行稳定性增加了一个新的决定因素。

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

Journal of Multinational Financial Management BUSINESS, FINANCE-

CiteScore

7.30

自引率

4.80%

发文量

审稿时长

30 days

期刊介绍： International trade, financing and investments have grown at an extremely rapid pace in recent years, and the operations of corporations have become increasingly multinationalized. Corporate executives buying and selling goods and services, and making financing and investment decisions across national boundaries, have developed policies and procedures for managing cash flows denominated in foreign currencies. These policies and procedures, and the related managerial actions of executives, change as new relevant information becomes available. The purpose of the Journal of Multinational Financial Management is to publish rigorous, original articles dealing with the management of the multinational enterprise. Theoretical, conceptual, and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • Foreign exchange risk management • International capital budgeting • Forecasting exchange rates • Foreign direct investment • Hedging strategies • Cost of capital • Managing transaction exposure • Political risk assessment • International working capital management • International financial planning • International tax management • International diversification • Transfer pricing strategies • International liability management • International mergers.