TY  - RPRT
U1  - Arbeitspapier
A1  - D’Orazio, Paola
A1  - Reale, Jessica
A1  - Pham, Anh Duy
T1  - Climate-induced liquidity crises : interbank exposures and macroprudential implications
T2  - Chemnitz economic papers
N2  - 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.
KW  - Climate Risks
KW  - Agent-Based Modeling
KW  - Prudential Regulation
KW  - Liquidity Crises
KW  - Interbank Market
Y1  - 2023
IS  - No. 059
SP  - 29
S1  - 29
PB  - Chemnitz University of Technology, Faculty of Economics and Business Administration
CY  - Chemnitz, Germany
ER  -