Environmental Risk Modelling in Banking

Banks are significantly impacted by environmental risk, which can result in financial penalties and loss of liquidity. This book explores the impact of environmental risk on the banking sector and proposes a new methodology for managing and modelling this risk. It emphasizes the importance of environmental risk modelling in asset and liability management and discusses banks' responses to macroprudential risk.

Format: Paperback / softback
Length: 170 pages
Publication date: 29 December 2022
Publisher: Taylor & Francis Ltd

Environmental risk poses a significant threat to the financial stability of banks, as they are directly impacted by the loss of liquidity and financial penalties imposed due to non-compliance with regulations and harmful actions towards the environment. This book delves into the impact of environmental risk on the banking sector and explores strategies to mitigate this risk, with a particular focus on the role of modelling. It argues that environmental risk modelling enables banks to estimate the patterns and consequences of environmental risk on their operations and implement measures to minimize the likelihood of losses. The methodology, software, and mathematical and econometric models used in environmental risk modelling play a crucial role in this process.

The book examines banks' responses to macroprudential risk, particularly regarding their adaptation strategies, the mechanisms of its spread, risk management and modelling, and sustainable business models. It introduces the fundamental concepts, definitions, and regulations related to environmental risk within the context of its influence on the banking industry.

The book adopts a quantitative and qualitative approach and proposes a novel methodology for environmental risk management and modelling in the banking sector. It is intended for researchers, scholars, and students in environmental economics, finance, banking, sociology, law, and political sciences who are interested in understanding and addressing the challenges posed by environmental risk in the financial sector.

Weight: 288g
Dimension: 234 x 155 x 14 (mm)
ISBN-13: 9781032315119