Arbeitspapier

Local Banks and flood risk: The case of Germany

This paper uses a simulation model to evaluate the effects of river flooding events occurring within Germany on regional' banks. Under a 1.5℃ increase in temperature, the impact is overall rather small, even accounting for the devaluation of loans exposed to floods. However, under a 3℃ increase, bank losses can reach 1% of total assets. We show that the implementation of adaptation solutions would be successful in keeping risks at the current level.

Language
Englisch

Bibliographic citation
Series: JRC Working Papers in Economics and Finance ; No. 2023/13

Classification
Wirtschaft
Subject
Physical risk
river flood events
dynamic balance sheet
banking crisis

Event
Geistige Schöpfung
(who)
Bellia, Mario
Di Girolamo, Erica Francesca
Pagano, Andrea
Papadopoulos, Georgios
Event
Veröffentlichung
(who)
European Commission
(where)
Ispra
(when)
2023

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bellia, Mario
  • Di Girolamo, Erica Francesca
  • Pagano, Andrea
  • Papadopoulos, Georgios
  • European Commission

Time of origin

  • 2023

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