Accessible Version
Climate Change and Financial Stability, Accessible Data
Figure 1. Stylized Relationships between Climate, Economic, and Financial Risks
This figure shows a wide green box at the top that reads, “Climate Risks (e.g., increased frequency/severity of natural disasters, rising sea level, greater temperature volatility)”
Two arrows point downward, to a blue box on the lower left, and an orange box on the lower right. There is a two-directional arrow between the blue and orange boxes.
The blue box on the lower left reads, “Risks to Economic Activity (e.g., changes in employment, production, service provision).”
The orange box on the lower right read, “Financial Risks (e.g., changes in value of financial assets, cost or availability of liquidity or credit, access to risk-mitigation instruments, operational losses).”
Figure 2. Possible Transmission from Climate-Related Risks to Financial System Vulnerabilities
This figure shows three boxes:
The left box is titled Climate-Related Risks. The center box is titled Examples of Climate Change Related Features. The right box is titled Vulnerabilities.
Arrows from left to right show a flow from one box to the next.
In the Climate-Related Risks Box, there are 5 items: Acute climate hazards, Chronic climate shifts, Climate policies, Technological advances, and Investor/consumer perceptions.
The words “increased frequency” and “increased severity” are shown between the left and center box.
In the Center box, Examples of Climate Change-Related Features, there are 4 items: Non-linear impact on financial risks andmodels, Timing uncertainty, Incomplete contracts, and Opacity of exposures.
In the Right box, Vulnerabilities, there are 4 items: Asset valuations, Borrowing by businesses and households, Leverage in the financial sector, and Funding Risks