Bank Carbon Risk Index – A simple indicator of climate-related transition risks of lending activity

László Bokor

No 2021/141, MNB Occasional Papers from Magyar Nemzeti Bank (Central Bank of Hungary)

Abstract: I propose a simple indicator of climate-related transition risks of banks’ lending activity based on transaction-level loan data. The underlying idea is that the higher the greenhouse gas intensity of an economic activity (and so a debtor), the higher its transition risk. Recent Hungarian trends of this indicator alerts to significantly regrowing risks.

Keywords: climate change; transition risk; greenhouse gas intensity; lending activity; risk indicator (search for similar items in EconPapers)
JEL-codes: C43 G21 Q54 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2021
New Economics Papers: this item is included in nep-ban, nep-ene, nep-env, nep-fdg, nep-isf and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:mnb:opaper:2021/141

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