Publication:
Climate-Related and Environmental Risks for the Banking Sector in Latin America and the Caribbean: A Preliminary Assessment

Simple item page
dc.contributor.authorCalice, Pietro
dc.contributor.authorMiguel, Faruk
dc.date.accessioned2021-06-17T15:35:59Z
dc.date.available2021-06-17T15:35:59Z
dc.date.issued2021-06
dc.description.abstractThere is increasing recognition that climate-related and environmental risks are a source of financial risks. Using publicly available data, this paper attempts a preliminary estimation of the physical and transition risks for the banking sector in a sample of economies in Latin America and the Caribbean. The results show that exposure to floods, compounded by high loan concentration in and around countries’ capital cities, represents the most important source of credit risk for the banking sector. After large-scale natural disasters, banks’ nonperforming loans increase by up to 1.4 percentage points in affected provinces. The results also show that banks in the region are exposed to transition risks, especially in Argentina, Bolivia, Paraguay, and Uruguay, due to their high lending to the agriculture sector, which is the largest emitter of greenhouse gases in the countries. Firms operating in transition-sensitive sectors already present signs of financial stress, especially those in the fossil fuel and agriculture sectors. Overall, the results demonstrate the importance for financial authorities in the region to advance in the integration of climate-related and environmental risks in their work.en
dc.identifierhttp://documents.worldbank.org/curated/en/265231623356999217/Climate-Related-and-Environmental-Risks-for-the-Banking-Sector-in-Latin-America-and-the-Caribbean-A-Preliminary-Assessment
dc.identifier.doi10.1596/1813-9450-9694
dc.identifier.urihttps://hdl.handle.net/10986/35764
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9694
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectENVIRONMENTAL SUSTAINABILITY
dc.subjectCLIMATE CHANGE
dc.subjectBANKING SECTOR
dc.subjectRISK
dc.subjectFINANCIAL STABILITY
dc.subjectNATURAL DISASTER
dc.subjectFLOOD RISK
dc.subjectCREDIT RISK
dc.subjectGREENHOUSE GAS EMISSIONS
dc.titleClimate-Related and Environmental Risks for the Banking Sector in Latin America and the Caribbeanen
dc.title.subtitleA Preliminary Assessmenten
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleClimate-Related and Environmental Risks for the Banking Sector in Latin America and the Caribbean: A Preliminary Assessment
okr.date.disclosure2021-06-10
okr.date.doiregistration2025-04-10T11:06:45.372399Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/265231623356999217/Climate-Related-and-Environmental-Risks-for-the-Banking-Sector-in-Latin-America-and-the-Caribbean-A-Preliminary-Assessment
okr.guid265231623356999217
okr.identifier.doi10.1596/1813-9450-9694
okr.identifier.externaldocumentum090224b0886c74d2_1_0
okr.identifier.internaldocumentum33163474
okr.identifier.reportWPS9694
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/265231623356999217/pdf/Climate-Related-and-Environmental-Risks-for-the-Banking-Sector-in-Latin-America-and-the-Caribbean-A-Preliminary-Assessment.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.geographicalCaribbean
okr.region.geographicalLatin America
okr.topicEnvironment::Adaptation to Climate Change
okr.topicEnvironment::Climate Change Impacts
okr.topicEnvironment::Climate Change Mitigation and Green House Gases
okr.topicEnvironment::Natural Disasters
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicFinance and Financial Sector Development::Insurance & Risk Mitigation
okr.unitFinance, Competitiveness and Innovation Global Practice
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
Climate-Related-and-Environmental-Risks-for-the-Banking-Sector-in-Latin-America-and-the-Caribbean-A-Preliminary-Assessment.pdf
Size:
1.33 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
Climate-Related-and-Environmental-Risks-for-the-Banking-Sector-in-Latin-America-and-the-Caribbean-A-Preliminary-Assessment.txt
Size:
126.26 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers