Caloia, Francesco G.; Ginkel, Kees C. H. van; Jansen, … - 2023 - This version: 20 December 2023
We study whether floods can affect financial stability through a credit risk channel. Our focus is on the Netherlands … floods. Using geocoded data for close to EUR 650 billion in real estate exposures, we consider possible implications of such … floods for bank capital. For a set of 38 adverse scenarios, we estimate that flood-related property damages lead to capital …