Template-Type: ReDIF-Paper 1.0

Author-Name: Laszlo Bokor
Author-X-Name-First: Laszlo
Author-X-Name-Last: Bokor
Author-Email: bokorl@mnb.hu
Author-Workplace-Name: Magyar Nemzeti Bank (Central Bank of Hungary)

Title: Bank Carbon Risk Index – A simple indicator of climate-related transition risks of lending activity

Abstract: I propose a simple indicator of climate-related transition risks of banks’ lending activity based on transaction-level loan data. The underlying idea is that the higher the greenhouse gas intensity of an economic activity (and so a debtor), the higher its transition risk. Recent Hungarian trends of this indicator alerts to significantly regrowing risks.

Length: 22 pages
Creation-Date: 2021
File-URL: https://www.mnb.hu/letoltes/mnb-op-141-final.pdf
File-Format: Application/pdf

Number: 2021/141
Classification-JEL: C43, G21, Q54
Keywords: climate change, transition risk, greenhouse gas intensity, lending activity, risk indicator
Handle: RePEc:mnb:opaper:2021/141