Impact of Climate Risks on the Financial Sector: Central Banks’ Assessments
The paper reviews the approaches of central banks to assessing climate risks in the process of monitoring financial stability, as well as analyzing the impact of climate change on the financial sector and macroeconomic indicators. In particular, the author considers the main groups of climate risks to which the financial system may be exposed, and the mechanisms of their transmission, as well as the central banks’ experience of performing stress tests of the financial system’s resilience to climate risks and modeling the economic effects of these risks.