Climate Change and Bank Stability: An Empirical Evidence from the Indian Banks

Onkar Shivraj Swami ()
Additional contact information
Onkar Shivraj Swami: Reserve Bank of India

A chapter in Financial Markets, Climate Risk and Renewables, 2024, pp 173-182 from Springer

Abstract: Abstract Globally, during the last two decades, the frequency and intensity of climate-induced natural disasters have increased significantly, including in India. The climate-related financial risk does have a substantial impact on the banking system, both directly and indirectly through the transmission channel. In this respect, the purpose of the present study is to investigate the impact of climate-induced natural catastrophes on the stability of the Indian banking sector by using panel data from the year 2002 to 2019. We find that a higher number of natural disasters, greater financial losses linked with natural calamities, and rising temperature levels are strongly and negatively associated with bank stability. Improving climate change adaptation and adopting prudential regulations for climate risk may help to contain economic and financial losses to the banking system by controlling frequent and severe natural disasters.

Keywords: Climate change; Natural disasters; Bank stability; Indian banks (search for similar items in EconPapers)
JEL-codes: G21 G32 Q54 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:prbchp:978-981-97-6687-1_3

Ordering information: This item can be ordered from
http://www.springer.com/9789819766871

DOI: 10.1007/978-981-97-6687-1_3

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().