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Effect of climate change on financial institutions and the financial system

Author

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  • Ozili, Peterson K

Abstract

Climate change is emerging as an important issue, and has been a cause for increasing uncertainty in the business sector. It is important to understand the effects of climate change events on financial institutions and the financial system. This study analyzes the effect of climate change on financial institutions and the financial system, and show that climate change has serious consequences on the stability of financial institutions through its effect on the counterparties and clients of financial institutions. Climate change also has serious consequences on the stability of the financial system through its effect on financial institutions.

Suggested Citation

  • Ozili, Peterson K, 2020. "Effect of climate change on financial institutions and the financial system," MPRA Paper 103317, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:103317
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    File URL: https://mpra.ub.uni-muenchen.de/103317/1/MPRA_paper_103317.pdf
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    References listed on IDEAS

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    1. Emanuele Campiglio & Yannis Dafermos & Pierre Monnin & Josh Ryan-Collins & Guido Schotten & Misa Tanaka, 2018. "Climate change challenges for central banks and financial regulators," Nature Climate Change, Nature, vol. 8(6), pages 462-468, June.
    2. Andrew Dlugolecki, 2008. "Climate Change and the Insurance Sector," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 33(1), pages 71-90, January.
    3. Giuzio, Margherita & Krušec, Dejan & Levels, Anouk & Melo, Ana Sofia & Mikkonen, Katri & Radulova, Petya, 2019. "Climate change and financial stability," Financial Stability Review, European Central Bank, vol. 1.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Myvel Nabil, 2024. "Assessment of the Relationship among Climate Change, Green Finance and Financial Stability: Evidence from Emerging and Developed Markets," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 16(2), pages 1-51, February.
    2. Ozili Peterson. K., 2021. "Making Sustainble Finance Sustainable," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 17(3), pages 64-70, September.
    3. Manal Ayyad Dhif Alshammry & Saqib Muneer, 2023. "The influence of economic development, capital formation, and internet use on environmental degradation in Saudi Arabia," Future Business Journal, Springer, vol. 9(1), pages 1-16, December.
    4. Ozili, Peterson K, 2021. "Managing Climate Change Risk: The Policy Options for Central Banks," MPRA Paper 111217, University Library of Munich, Germany.
    5. Hela Borgi & Fatma Mabrouk & Jihen Bousrih & Mohamed Mehdi Mekni, 2023. "Environmental Change and Inclusive Finance: Does Governance Quality Matter for African Countries?," Sustainability, MDPI, vol. 15(4), pages 1-15, February.
    6. Dong, Yangzi & Wong, Wing-Keung & Muda, Iskandar & Cong, Phan The & Duong Hoang, Anh & Ghardallou, Wafa & Ha, Ngo Ngan, 2023. "Do natural resources utilization and economic development reduce greenhouse gas emissions through consuming renewable and Clean Technology? A case study of China towards sustainable development goals," Resources Policy, Elsevier, vol. 85(PB).

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    Keywords

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    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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