Not very. We find that weather disasters over the last quarter century had insignificant or small effects on U.S. banks' performance. This stability seems endogenous rather than a mere reflection of federal aid. Disasters increase loan demand, which offsets losses and actually boosts profits at...

The urgency of estimating the impact of climate risks on the financial system is increasingly recognized among scholars and practitioners. By adopting a network approach to financial dependencies, we look at how climate policy risk might propagate through the financial system. We develop a...

This paper studies how a climate shock is transmitted through the financial system. Our empirical strategy combines data on climate and banking with El Niño, a natural experiment producing quasi-random variation in US climate. El Niño generates heterogeneous changes in lending across counties,...