Template-Type: ReDIF-Paper 1.0
Author-Name: Laszlo Bokor
Author-X-Name-First: Laszlo
Author-X-Name-Last: Bokor
Author-Email: bokor@digikabel.hu
Author-Workplace-Name: Magyar Nemzeti Bank (the Central Bank of Hungary)

Title: Climate Stress Test of the Hungarian Banking System

Abstract: This paper presents the pilot top-down climate stress test of the Hungarian banking system over the 2020-2050 horizon. The focus is on a core indicator of financial soundness, the ratio of non-performing loans. Three scenarios are considered with different grades of compliance with the Paris Agreement. Results show that, by 2050, the sectoral excess ratios of non-compliance are scattering from 0 to 19 percentage points.

Length: 30 pages

Creation-Date: 2022

File-URL: https://www.mnb.hu/letoltes/mnb-op-147-final-1.pdf

File-Format: Application/pdf
Number: 2022/147
Classification-JEL: C51, C53, G21, Q54
Keywords: climate stress test, banking system, non-performing loans, sectoral granularity
Handle: RePEc:mnb:opaper:2022/147