 The impact of climate change on credit risk of rural financial institutions: A threshold effect based on agricultural insuranceQianting Ma, Yueshu Zhou and Jiaji Wang The North American Journal of Economics and Finance, 2024, vol. 71, issue C 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. Keywords: Rural financial institutions; Credit risk; Climate change; Agricultural insurance; Threshold effect (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:71:y:2024:i:c:s106294082400010x DOI: 10.1016/j.najef.2024.102086 Access Statistics for this article The North American Journal of Economics and Finance is currently edited by Hamid Beladi More articles in The North American Journal of Economics and Finance from Elsevier |
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