building a dynamic stochastic general equilibrium model linked to global climate and a catastrophe risk model specifically for … drawing strong conclusions about the relevance of climate risk, as the model focused only on typhoons’ physical capital …

Traditional theory suggests that more profitable banks should have lower risk-taking incentives. Then why did many … to reconcile theory and evidence. In our setup, banks are endowed with a fixed core business. They take risk by levering … core business allows a bank to borrow more and take side risks on a larger scale, offsetting lower incentives to take risk …

vulnerabilities. Further, the paper presents operational issues faced by debt managers, including the need to develop a risk …

This paper builds a framework to quantify the financial stability implications of climate-related transition risk in … retail trade, and transportation sectors appear to be the most important in the transmission of the risk to the banking …

This paper explores three possible transmission channels for transition risk shocks to the financial system in Norway … discusses ways to advance the still evolving field of transition risk stress testing …

Rather than taking on more risk, US insurers hit hard by the crisis pulled back from risk taking, relative to insurers … not hit as hard by the crisis. Capital requirements alone do not explain this risk reduction: insurers hit hard reduced … risk within assets with identical regulatory treatment. State level US insurance regulation makes it unlikely this risk …

leading to systemic vulnerabilities - increases banks' interest rate risk exposure and lowers their net interest margin …

Banks may be unable to refinance short-term liabilities in case of solvency concerns. To manage this risk, banks can … choices, and increase refinancing risk. To be effective, liquidity requirements should be complemented by measures that …

capital or liquidity within a group during periods of stress. This study presents a framework on how to integrate this risk …