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 …

Addressing recent calls by European regulatory and supervisory authorities, we develop a new bottom-up climate risk … default risk of STOXX Europe 600 firms. For about 5% of the sample firms, we find asset devaluation shocks larger than 30% and … stress test on credit risk based on these results, we find a decrease in capital ratios between $$-1.2$$and $$-1 …

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 …

; (iii) a novel set of climate-specific models to capture the direct and indirect transmission channels of climate risk …

. Specifically, we introduce a measure called CRISK, systemic climate risk, which is the expected capital shortfall of a financial … institution in a climate stress scenario. We use the measure to study the climate-related risk exposure of large global banks in …

Climate risk is one of the type of risks in a bank's portfolio which is not fully recognized, and its impact on the … future overall risk changes is hidden due to lack of sufficient knowledge at the moment. One of the most common data comes … from Network for Greening the Financial System (NGFS) scenarios related to climate change (physical risk) and climate …

Stress testing has become a tool of choice in banking for risk managers and regulators alike, and it is used more … widely as a way to assess resilience to severely adverse events. Yet even the most creative risk manager would have been …

country relevant to transition risk. Finally, this paper provides a comprehensive analysis of the impact of transition risk on … financial risk. An accelerated transition to a carbon-neutral economy would be helpful to contain risks for financial …