Executive Panel: Climate Change and Financial Stability

Year Published

2016

Contributing Organizations

Global Affairs Canada (GAC)

Toronto Centre

The Swedish International Development Cooperation Agency (Sida)

Type of Resource

Webinar or Podcast

Languages

English

Relevant Topics

Core Topic

Introduction to Climate Change

Topic 2

Climate Strategy & Capabilities

Target Audience

Governments & Policymakers

Financial Services Providers

Banks

Relevant Geography

Global

Resource Description

This resource provides an overview of climate-related risks and how these risks affect financial institutions, markets, and the broader economy.

Why This Matters

This resource supports the development of risk-sensitive, forward-looking approaches that can better capture the unique nature of climate-related threats.

Key Insights

Highlights transmission channels including credit, market, liquidity, insurance, and operational risks, as well as potential macroeconomic shocks
Suggests that climate risks are characterized by non-linearity, long time horizons, and radical uncertainty, making traditional risk models inadequate
Recommends strengthening disclosure frameworks, enhancing supervisory capacity, and integrating climate considerations into risk assessments and financial stability monitoring
Identifies a role for central banks and supervisors in leading analysis, scenario development, and collaboration with other actors

Secondary File Resources

Secondary Resource Link(s)

Direct link to TC Website for further information

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