THE IMPACT OF CLIMATE CHANGE ON THE RISK-TAKING LEVEL OF CHINESE COMMERCIAL BANKS: EMPIRICAL EVIDENCE FROM CHINESE LOCAL COMMERCIAL BANKS

Yuegang Song (), Wenyuan Chen () and Kanyu Zhang ()
Additional contact information
Yuegang Song: School of Business, Henan Normal University, Xinxiang, P. R. China
Wenyuan Chen: School of Business, Henan Normal University, Xinxiang, P. R. China
Kanyu Zhang: ��Faculty of Science, Dalhousie University Halifax, Canada

Climate Change Economics (CCE), 2024, vol. 15, issue 04, 1-31

Abstract: China’s risk disasters caused by climate change have increased the risk-taking level of China’s commercial banks, posing a threat to the stable development of financial markets. Based on the data from 152 commercial banks in China from 2011 to 2021, this paper uses the fixed effect model to analyze the effect and mechanism of China’s climate change on the risk-taking level of Chinese commercial banks. The main conclusions are as follows. (1) Climate change has significantly improved the risk-taking level of Chinese commercial banks. The results remain significant under the robustness and endogenous tests, such as dealing with endogenous problems, changing variables and adjusting sample intervals. (2) The results of heterogeneity analysis show that under different regions and different types of conditions, the impact of climate change on the risk-taking level of China’s commercial banks is heterogeneous, and the impact is stronger in urban commercial banks and eastern China. (3) The direct economic losses caused by natural disasters caused by climate change affect the risk-taking level of Chinese commercial banks; however, the adjustment of ex ante disaster insurance can weaken the impact of climate change on the risk-taking level of Chinese commercial banks. This paper studies the impact of climate change on the risk-taking level of Chinese commercial banks from the perspective of bank risk-taking level, which is of great significance to enhance the risk prevention awareness of Chinese commercial banks in response to climate change.

Keywords: Climate change; commercial banks; risk-taking (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2010007824400025
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ccexxx:v:15:y:2024:i:04:n:s2010007824400025

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2010007824400025

Access Statistics for this article

Climate Change Economics (CCE) is currently edited by Robert Mendelsohn

More articles in Climate Change Economics (CCE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().