We find that banks' credit exposures to transition risks are modest. We build on the estimated sectoral effects of climate transition policies from general equilibrium models. Even when we consider the strictest policies or the most adverse scenarios, exposures do not exceed 14 percent of banks'...

Climate change threatens the economy of the United States through increased flooding and storm damage, climate-driven changes in crop yields, disruptions in labor productivity, crime, and public health and heat-related strains on energy systems. Combining current data with state-of-the-art...