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Temperature variability, natural disasters and bank systemic risk: Evidence from Chinese city commercial banks

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  • Wang, Daoping
  • Wang, Yichun
  • Liu, Yangjingzhuo

Abstract

This paper examines the impact of temperature variability on bank systemic risk and the mediating effect of natural disasters. By employing data of 105 Chinese city commercial banks and 30 provinces from 2008 to 2020, we find a positive relationship between temperature variability and bank systemic risk, as well as the mediating effect of natural disasters. Moreover, heterogeneity analysis demonstrates that the relationship between temperature variability and bank systemic risk is only significant for banks in regions with small seasonal temperature differences and southern provinces of China.

Suggested Citation

  • Wang, Daoping & Wang, Yichun & Liu, Yangjingzhuo, 2024. "Temperature variability, natural disasters and bank systemic risk: Evidence from Chinese city commercial banks," Economics Letters, Elsevier, vol. 242(C).
    • Handle: RePEc:eee:ecolet:v:242:y:2024:i:c:s0165176524003306
    DOI: 10.1016/j.econlet.2024.111846
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    Cited by:

    1. Tian, Chenkai & Shen, Xinyan & Liu, Yangjingzhuo, 2025. "Green finance policies and bank systemic risk: Evidence from listed banks in China," Finance Research Letters, Elsevier, vol. 80(C).
    2. Trinh, Hai Hong & Tran, Thao Phuong, 2024. "Global banking systems, financial stability, and uncertainty: How have countries coped with geopolitical risks?," International Review of Economics & Finance, Elsevier, vol. 96(PB).
    3. Wang, Daoping & Ji, Zhanghanyu & Shen, Xinyan, 2025. "Carbon neutrality policies and stock price crash risk: Evidence from China," Finance Research Letters, Elsevier, vol. 81(C).

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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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