Arbeitspapier
Climate-induced liquidity crises: interbank exposures and macroprudential implications
Although climate-induced liquidity risks can cause significant disruptions and instabilities in the financial sector, they are frequently overlooked in current debates and policy discussions. This paper proposes a macro-financial agent-based integrated assessment model to investigate the transmission channels of climate risks to financial instability and study the emergence of liquidity crises through interbank market dynamics. Our simulations show that the financial system could experience serious funding and market liquidity shortages due to climate-induced liquidity crises. Our investigation contributes to our understanding of the impact - and possible solutions - to climate-induced liquidity crises, besides the issue of asset stranding related to transition risks usually considered in the existing studies.
- Language
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Englisch
- Bibliographic citation
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Series: Chemnitz Economic Papers ; No. 059
- Classification
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Wirtschaft
- Subject
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Agent-Based Modeling
Climate Risks
Prudential Regulation
Interbank Market
Liquidity Crises
- Event
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Geistige Schöpfung
- (who)
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D'Orazio, Paola
Reale, Jessica
Anh Duy Pham
- Event
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Veröffentlichung
- (who)
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Chemnitz University of Technology, Faculty of Economics and Business Administration
- (where)
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Chemnitz
- (when)
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2023
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- D'Orazio, Paola
- Reale, Jessica
- Anh Duy Pham
- Chemnitz University of Technology, Faculty of Economics and Business Administration
Time of origin
- 2023
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