 Ark amidst floods: Evidence from personal credit at a Chinese bankSichong Chen, Qiyuan Xu, Jingjing Zeng and Yunfeng Zhao International Review of Financial Analysis, 2025, vol. 106, issue C Abstract: This paper investigates the impact of climate risks on banking, focusing on shifts in creditworthiness and the provision of personal credit in response to flood events. By combining unique branch-level personal lending data from a Chinese mega commercial bank with records of floods that triggered emergency interventions, we provide compelling evidence of increased delinquency rates attributable to flood-related shocks. However, bank branches located in regions with prior exposure to such events demonstrate adaptive resilience, leading to a lower propensity to loan delinquencies. Additionally, we reveal that Chinese banks are inclined to extend more loans to regions affected by flood events without a significant increase in credit spreads. Consequently, our study highlights the importance of reconciling corporate social responsibility with climate risk management within the banking sector. Keywords: Bank; Personal lending; Floods; Climate adaptation; Corporate social responsibility (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:finana:v:106:y:2025:i:c:s1057521925006015 DOI: 10.1016/j.irfa.2025.104514 Access Statistics for this article International Review of Financial Analysis is currently edited by B.M. Lucey More articles in International Review of Financial Analysis from Elsevier |
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