IDEAS home Printed from https://ideas.repec.org/a/eee/ecofin/v71y2024ics106294082400010x.html
   My bibliography  Save this article

The impact of climate change on credit risk of rural financial institutions: A threshold effect based on agricultural insurance

Author

Listed:
  • Ma, Qianting
  • Zhou, Yueshu
  • Wang, Jiaji

Abstract

Climate change affects the stability of the rural financial system. This paper uses the multi-agent model to deduce the impact mechanism of climate change on the credit risk of rural financial institutions, and conducts a series of empirical tests. The results show that: (i) climate change has an adverse impact on the credit risk of rural financial institutions. (ii) agricultural insurance shows a threshold effect in the process of climate change affecting the credit risk of rural financial institutions. (iii) high-level agricultural insurance can mitigate the adverse impact of climate change on the credit risk of rural financial institutions. It reveals that the agricultural insurance is a crucial policy for taking precautions.

Suggested Citation

  • Ma, Qianting & Zhou, Yueshu & Wang, Jiaji, 2024. "The impact of climate change on credit risk of rural financial institutions: A threshold effect based on agricultural insurance," The North American Journal of Economics and Finance, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:ecofin:v:71:y:2024:i:c:s106294082400010x
    DOI: 10.1016/j.najef.2024.102086
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S106294082400010X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.najef.2024.102086?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Rural financial institutions; Credit risk; Climate change; Agricultural insurance; Threshold effect;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecofin:v:71:y:2024:i:c:s106294082400010x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620163 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.