We examine whether banks manage firms’ climate transition risks via corporate loan securitization. Results show that banks are more likely to securitize loans granted to firms that become more carbon-intensive. The effect is more pronounced if banks have a lower willingness to adjust loan...

We examine how banks manage carbon transition risk by selling loans given to polluting borrowers to less regulated shadow banks in securitization markets. Exploiting the election of Donald Trump as an exogenous shock that reduces carbon risk, we find that banks’ securitization decisions are...

Kann die Bankenaufsicht den Übergang zu einer kohlenstoffneutralen Wirtschaft unterstützen, indem sie die Kreditvergabe der Banken an Unternehmen beeinflusst? Dieser Beitrag untersucht die Kreditvergabe der Banken vor und nach dem weltweit ersten Klimastresstest in Frankreich und die Reaktion...

We ask if bank supervisors’ efforts to combat climate change affect banks' lending and their borrowers’ transition to the carbon-neutral economy. Combining information from the French supervisory agency’s climate pilot exercise with borrowers' emission data, we first show that banks that...

Reducing the impact of climate change on poor and vulnerable householdsis essential to hastening poverty reduction. In thinking about policies thatdo this, it is useful to apply the same hazard, exposure and vulnerabilityframework that is often used to understand the physical impacts of...

Reducing the impact of climate change on poor and vulnerable households is essential to hastening poverty reduction. In thinking about policies that do this, it is useful to apply the same hazard, exposure and vulnerability framework that is often used to understand the physical impacts of...

Does banking supervision affect borrowers‘ transition to the carbon-neutral economy? We use a unique identification strategy that combines the French bank climate pilot exercise with borrowers‘ carbon emissions to present two novel findings. First, climate stress tests actively facilitate...