Air pollution and bank risk taking: Evidence from China

Zhilei Pan, Shouwei Li, Jingwei Li and Chen Gong

Finance Research Letters, 2024, vol. 65, issue C

Abstract: In the context of frequent environmental events that attract widespread attention, this paper investigates the impact of air pollution on bank risk-taking. Using the data of 105 city commercial banks in China from 2014 to 2021, our findings suggest that air pollution leads banks to reduce risk-taking, which is primarily driven by the frequency of extreme pollution days. Banks in cities with higher government environmental concern and those with smaller asset scale and lower risk resistance are relatively more sensitive to air pollution. The transparent environmental supervision weakens the effect of air pollution on bank risk-taking.

Keywords: Air pollution; Commercial banks; Risk taking (search for similar items in EconPapers)
JEL-codes: C33 G21 Q53 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:65:y:2024:i:c:s154461232400624x

DOI: 10.1016/j.frl.2024.105594

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