Abstract
This study investigates the impact of climate change-induced risk on bank profitability in the G-7 countries from 2001 to 2022. Using dynamic panel GMM estimation to analyze banking industry data with climate risk factor, the study finds that climate risk has a negative effect on bank profitability. The study also shows that bank liquidity creation plays a key role in transmitting the negative impact of climate risk on bank profitability. Additionally, the study's results are robust and hold up under different measures of bank liquidity creation. The study's findings suggest that policymakers may need to create climate risk management policies to mitigate the adverse effects of climate change on the banking sector.
| Original language | English |
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| Publication status | Unpublished - 7 Jul 2023 |
| Event | 12th International Research Meeting in Business & Management - Nice, France Duration: 6 Jul 2023 → 8 Jul 2023 https://irmbam2023.sciencesconf.org/ |
Conference
| Conference | 12th International Research Meeting in Business & Management |
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| Abbreviated title | IRMBAM2023 |
| Country/Territory | France |
| City | Nice |
| Period | 6/07/23 → 8/07/23 |
| Internet address |
Keywords
- Bank Profitability
- Liquidity Creation
- Climate Risk
