their clients’ natural disaster risk … disaster area. We find robust evidence that banks charge significantly higher loan spreads for firms located in the … neighborhood of the disaster area than for remote firms. The results are not driven by regional spillovers, limited credit supply …

: Transition Risk, associated with policies undertaken by governments to foster climate change mitigation and adaptation; Physical … Risk, associated with the occurrence of extreme climatic events and its impact on the bank's assets. This paper analyzes … one of the most significant hazards within the Physical Risk domain, which is Flood Risk. The measurement is focused on …

We introduce a class of quantile-based risk measures that generalize Value at Risk (VaR) and, likewise Expected … probability of occurrence. The corresponding risk measure, called Loss VaR (LVaR), determines the minimal capital injection that … and applications to capital adequacy, portfolio risk management and catastrophic risk are presented …

application data from the U.S. Federal Disaster Loan program, which provides loans to households that have uninsured damages from … a federally-declared natural disaster, to a panel of credit records before and after the shock. We exploit a … following the disaster. We explore mechanisms using additional quasi-experimental variation in interest rates, finding support …

We test if and how banks adjust their lending in response to disaster risk in the form of a natural catastrophe … higher protability and reduced risk. Our results suggest that local banks are an effective mechanism to mitigate rare … disaster shocks faced especially by small and medium firms. …