Fuchs, Larissa; Nguyen, Huyen; Nguyen, Trang; Schaeck, Klaus - 2023
Does banking supervision affect bank borrowers’ transition to the carbon-neutral economy? We use a unique … present two novel findings. First, climate stress tests actively facilitate borrowers’ transition to a low-carbon economy via … unfriendly suppliers. Our findings establish a causal link between bank climate stress tests and borrowers’ reductions in …