management of transition risk exposures. Banks that signed the Net-Zero Alliance have reduced their exposures compared to non …

U.S. banking organizations' exposure to climate risks with implications for risk management practices and supervisory …

We examine the impact of the U.S. withdrawal from the Paris Agreement on the relationship between climate risk and … systemic risk of U.S. global banks. We find that after 2017, investors stopped pricing climate risk into U.S. systemic risk … directly, consistent with domestic investors expecting climate risk deregulation. However, climate risk still indirectly …

. We formulate and test opposing hypotheses about these effects. Our findings are consistent with the Risk Management … credit risk. The findings do not support the Moral Hazard Hypothesis, in which these banks expand credit supply … – particularly to relatively risky borrowers that pay high spreads – increasing their risk. Results are generally stronger for safer …

This paper analyzes banks' capital and risk-based capital (RBC) ratios as predictors of risk. Using quarterly data on U … market-based indicators of risk. Although both the capital and RBC ratios are statistically significant predictors of BHCs …' levels of risk, we find the capital ratio is a statistically significantly better predictor of risk than the RBC ratio. This …

stressed expected loss (SEL). We simulate a market downturn as a negative shock on interest rate and credit market risk factors …