Does heat stress deteriorate the quality of banks’ loan portfolios? Evidence from U.S. community banks
Author
Abstract
Suggested Citation
DOI: 10.1016/j.frl.2024.106205
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Cortés, Kristle Romero & Strahan, Philip E., 2017.
"Tracing out capital flows: How financially integrated banks respond to natural disasters,"
Journal of Financial Economics, Elsevier, vol. 125(1), pages 182-199.
- Kristle Romero Cortes & Philip E. Strahan, 2014. "Tracing Out Capital Flows: How Financially Integrated Banks Respond to Natural Disasters," Working Papers (Old Series) 1412, Federal Reserve Bank of Cleveland.
- Kristle Romero Cortes & Philip E. Strahan, 2015. "Tracing Out Capital Flows: How Financially Integrated Banks Respond to Natural Disasters," Working Papers (Old Series) 14-12R, Federal Reserve Bank of Cleveland.
- Tanya Fiedler & Andy J. Pitman & Kate Mackenzie & Nick Wood & Christian Jakob & Sarah E. Perkins-Kirkpatrick, 2021. "Business risk and the emergence of climate analytics," Nature Climate Change, Nature, vol. 11(2), pages 87-94, February.
- Benjamin F. Jones & Benjamin A. Olken, 2010.
"Climate Shocks and Exports,"
American Economic Review, American Economic Association, vol. 100(2), pages 454-459, May.
- Benjamin F. Jones & Benjamin A. Olken, 2010. "Climate Shocks and Exports," NBER Working Papers 15711, National Bureau of Economic Research, Inc.
- Hendrik Hakenes & Iftekhar Hasan & PhilIP Molyneux & Ru Xie, 2015.
"Small Banks and Local Economic Development,"
Review of Finance, European Finance Association, vol. 19(2), pages 653-683.
- Hasan, Iftekhar & Molyneux, Phil & Xie, Ru & Hakenes, Hendrik, 2014. "Small banks and local economic development," Bank of Finland Research Discussion Papers 5/2014, Bank of Finland.
- Marshall Burke & Solomon M. Hsiang & Edward Miguel, 2015. "Global non-linear effect of temperature on economic production," Nature, Nature, vol. 527(7577), pages 235-239, November.
- Duc Duy Nguyen & Steven Ongena & Shusen Qi & Vathunyoo Sila, 2022.
"Climate Change Risk and the Cost of Mortgage Credit [Does climate change affect real estate prices? Only if you believe in it],"
Review of Finance, European Finance Association, vol. 26(6), pages 1509-1549.
- Duc Duy Nguyen & Steven Ongena & Shusen Qi & Vathunyoo Sila, 2020. "Climate Change Risk and the Costs of Mortgage Credit," Swiss Finance Institute Research Paper Series 20-97, Swiss Finance Institute.
- Joshua Graff Zivin & Matthew Neidell, 2014.
"Temperature and the Allocation of Time: Implications for Climate Change,"
Journal of Labor Economics, University of Chicago Press, vol. 32(1), pages 1-26.
- Joshua Graff Zivin & Matthew J. Neidell, 2010. "Temperature and the Allocation of Time: Implications for Climate Change," NBER Working Papers 15717, National Bureau of Economic Research, Inc.
- Viral V. Acharya & Richard Berner & Robert Engle & Hyeyoon Jung & Johannes Stroebel & Xuran Zeng & Yihao Zhao, 2023.
"Climate Stress Testing,"
Annual Review of Financial Economics, Annual Reviews, vol. 15(1), pages 291-326, November.
- Viral V. Acharya & Richard Berner & Robert Engle & Hyeyoon Jung & Johannes Stroebel & Xuran Zeng & Yihao Zhao, 2023. "Climate Stress Testing," Staff Reports 1059, Federal Reserve Bank of New York.
- Viral V Acharya & Richard Berner & Robert Engle & Hyeyoon Jung & Johannes Stroebel & Xuran Zeng & Yihao Zhao, 2023. "Climate Stress Testing," CESifo Working Paper Series 10345, CESifo.
- Viral V. Acharya & Richard Berner & Robert F. Engle III & Hyeyoon Jung & Johannes Stroebel & Xuran Zeng & Yihao Zhao, 2023. "Climate Stress Testing," NBER Working Papers 31097, National Bureau of Economic Research, Inc.
- Berger, Allen N. & DeYoung, Robert, 1997.
"Problem loans and cost efficiency in commercial banks,"
Journal of Banking & Finance, Elsevier, vol. 21(6), pages 849-870, June.
- Allen N. Berger & Robert DeYoung, "undated". "Problem Loans and Cost Efficiency in Commercial Banks," Finance and Economics Discussion Series 1997-08, Board of Governors of the Federal Reserve System (U.S.), revised 10 Dec 2019.
- Allen N. Berger & Robert DeYoung, 1997. "Problem loans and cost efficiency in commercial banks," Finance and Economics Discussion Series 1997-8, Board of Governors of the Federal Reserve System (U.S.).
- Allen N. Berger & Robert DeYoung, 1996. "Problem loans and cost efficiency in commercial banks," Proceedings 505, Federal Reserve Bank of Chicago.
- Allen N. Berger & Robert DeYoung, 1995. "Problem Loans and Cost Efficiency in Commercial Banks," Center for Financial Institutions Working Papers 96-01, Wharton School Center for Financial Institutions, University of Pennsylvania.
- Quynh Anh Do & Van Phan & Duc Tam Nguyen, 2023. "How do local banks respond to natural disasters?," The European Journal of Finance, Taylor & Francis Journals, vol. 29(7), pages 754-779, May.
- Aguilar-Gomez, Sandra & Gutierrez, Emilio & Heres, David & Jaume, David & Tobal, Martin, 2024.
"Thermal stress and financial distress: Extreme temperatures and firms’ loan defaults in Mexico,"
Journal of Development Economics, Elsevier, vol. 168(C).
- Sandra Aguilar-Gomez & Emilio Gutierrez & David Heres & David Jaume & Martin Tobal, 2022. "Thermal Stress and Financial Distress: Extreme Temperatures and Firms’ Loan Defaults in Mexico," Working Papers 148, Red Nacional de Investigadores en Economía (RedNIE).
- Puri, Manju & Rocholl, Jörg & Steffen, Sascha, 2011.
"Global retail lending in the aftermath of the US financial crisis: Distinguishing between supply and demand effects,"
Journal of Financial Economics, Elsevier, vol. 100(3), pages 556-578, June.
- Manju Puri & Jörg Rocholl & Sascha Steffen, 2011. "Global retail lending in the aftermath of the US financial crisis: Distinguishing between supply and demand effects," NBER Working Papers 16967, National Bureau of Economic Research, Inc.
- Ari, Anil & Chen, Sophia & Ratnovski, Lev, 2021. "The dynamics of non-performing loans during banking crises: A new database with post-COVID-19 implications," Journal of Banking & Finance, Elsevier, vol. 133(C).
- Lawrence, Edward C & Arshadi, Nasser, 1995. "A Multinomial Logit Analysis of Problem Loan Resolution Choices in Banking," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(1), pages 202-216, February.
- E. Somanathan & Rohini Somanathan & Anant Sudarshan & Meenu Tewari, 2021.
"The Impact of Temperature on Productivity and Labor Supply: Evidence from Indian Manufacturing,"
Journal of Political Economy, University of Chicago Press, vol. 129(6), pages 1797-1827.
- E. Somanathan & Rohini Somanathan & Anant Sudarsan & Meenu Tewari, 2014. "The Impact of Temperature on Productivity and Labor Supply: Evidence from Indian Manufacturing," Working Papers id:6308, eSocialSciences.
- Somanathan, E. & Somanathan, Rohini & Sudarshan, Anant & Tewari, Meenu, 2021. "The impact of temperature on productivity and labor supply: Evidence from Indian manufacturing," Ruhr Economic Papers 912, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- Anant Sudarsan & E Somanathan & Rohini Somanathan, 2015. "The Impact of Temperature on Productivity and Labor Supply: Evidence from Indian Manufacturing," Working Papers id:7086, eSocialSciences.
- E. Somanathan & Rohini Somanathan & Anant Sudarshan & Meenu Tewari, 2015. "The Impact of temperature on productivity and labor supply: Evidence from Indian manufacturing," Discussion Papers 15-03, Indian Statistical Institute, Delhi.
- Anant Sudarshan & E. Somanathan & Rohini Somanathan & Meenu Tewari, 2015. "The Impact Of Temperature On Productivity And Labor Supply - Evidence From Indian Manufacturing," Working papers 244, Centre for Development Economics, Delhi School of Economics.
- Maximilian Auffhammer & Solomon M. Hsiang & Wolfram Schlenker & Adam Sobel, 2013.
"Using Weather Data and Climate Model Output in Economic Analyses of Climate Change,"
Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(2), pages 181-198, July.
- Maximilian Auffhammer & Solomon M. Hsiang & Wolfram Schlenker & Adam Sobel, 2013. "Using Weather Data and Climate Model Output in Economic Analyses of Climate Change," NBER Working Papers 19087, National Bureau of Economic Research, Inc.
- Ralf R. Meisenzahl, 2023. "How Climate Change Shapes Bank Lending: Evidence from Portfolio Reallocation," Working Paper Series WP 2023-12, Federal Reserve Bank of Chicago.
- Allen N. Berger & Gregory F. Udell, 1995.
"Universal Banking and the Future of Small Business Lending,"
Center for Financial Institutions Working Papers
95-17, Wharton School Center for Financial Institutions, University of Pennsylvania.
- Allen N. Berger & Gregory F. Udell, 1995. "Universal banking and the future of small business lending," Finance and Economics Discussion Series 95-21, Board of Governors of the Federal Reserve System (U.S.).
- Payel Acharya & Bethany Boggess & Kai Zhang, 2018. "Assessing Heat Stress and Health among Construction Workers in a Changing Climate: A Review," IJERPH, MDPI, vol. 15(2), pages 1-16, February.
- Nordhaus, William D, 1977.
"Economic Growth and Climate: The Carbon Dioxide Problem,"
American Economic Review, American Economic Association, vol. 67(1), pages 341-346, February.
- William D. Nordhaus, 1976. "Economic Growth and Climate: The Carbon Dioxide Problem," Cowles Foundation Discussion Papers 435, Cowles Foundation for Research in Economics, Yale University.
- Dimitrios, Anastasiou & Helen, Louri & Mike, Tsionas, 2016. "Determinants of non-performing loans: Evidence from Euro-area countries," Finance Research Letters, Elsevier, vol. 18(C), pages 116-119.
- Viral V. Acharya & Timothy Johnson & Suresh Sundaresan & Tuomas Tomunen, 2022. "Is Physical Climate Risk Priced? Evidence from Regional Variation in Exposure to Heat Stress," NBER Working Papers 30445, National Bureau of Economic Research, Inc.
- Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2012. "Temperature Shocks and Economic Growth: Evidence from the Last Half Century," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(3), pages 66-95, July.
- Mr. Shekhar Aiyar & Mr. Wolfgang Bergthaler & Jose M Garrido & Ms. Anna Ilyina & Andreas Jobst & Mr. Kenneth H Kang & Dmitriy Kovtun & Ms. Yan Liu & Mr. Dermot Monaghan & Ms. Marina Moretti, 2015. "A Strategy for Resolving Europe's Problem Loans," IMF Staff Discussion Notes 2015/019, International Monetary Fund.
- John Landon-Lane & Hugh Rockoff & Richard H. Steckel, 2011.
"Droughts, Floods and Financial Distress in the United States,"
NBER Chapters, in: The Economics of Climate Change: Adaptations Past and Present, pages 73-98,
National Bureau of Economic Research, Inc.
- John Landon-Lane & Hugh Rockoff & Richard H. Steckel, 2009. "Droughts, Floods and Financial Distress in the United States," NBER Working Papers 15596, National Bureau of Economic Research, Inc.
- Addoum, Jawad M. & Ng, David T. & Ortiz-Bobea, Ariel, 2023. "Temperature shocks and industry earnings news," Journal of Financial Economics, Elsevier, vol. 150(1), pages 1-45.
- Burke, Marshall & Hsiang, Solomon M & Miguel, Edward, 2015. "Global non-linear effect of temperature on economic production," Department of Economics, Working Paper Series qt3g72r0zv, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Shekhar Aiyar & Wolfgang Bergthaler & Jose M Garrido & Anna Ilyina & Andreas Jobst & Kenneth H Kang & Dmitriy Kovtun & Yan Liu & Dermot Monaghan & Marina Moretti, 2015. "A Strategy for Resolving Europe's Problem Loans," IMF Staff Discussion Notes 15/19, International Monetary Fund.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Leonardo Bortolan & Atreya Dey & Luca Taschini, 2024. "Volatile Temperatures and Their Effects on Equity Returns and Firm Performance," CESifo Working Paper Series 11438, CESifo.
- Duan, Tinghua & Li, Frank Weikai, 2024. "Climate change concerns and mortgage lending," Journal of Empirical Finance, Elsevier, vol. 75(C).
- Yuan, Zhengrong & Ding, Hai & Yu, Qiuzuo, 2024. "High temperature, bargaining power and within-firm wage inequality: Evidence from China," Economic Modelling, Elsevier, vol. 135(C).
- Chen, Zhenzhu & Li, Li & Tang, Yao, 2024.
"Weather, credit, and economic fluctuations: Evidence from China,"
Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 406-422.
- Chen, Zhenzhu & Li, Li & Tang, Yao, 2023. "Weather, Credit, and Economic Fluctuations: Evidence from China," MPRA Paper 116472, University Library of Munich, Germany.
- Jacopo Ponticelli & Qiping Xu & Stefan Zeume, 2023. "Temperature and Local Industry Concentration," Working Papers 23-51, Center for Economic Studies, U.S. Census Bureau.
- Aguilar-Gomez, Sandra & Gutierrez, Emilio & Heres, David & Jaume, David & Tobal, Martin, 2024.
"Thermal stress and financial distress: Extreme temperatures and firms’ loan defaults in Mexico,"
Journal of Development Economics, Elsevier, vol. 168(C).
- Sandra Aguilar-Gomez & Emilio Gutierrez & David Heres & David Jaume & Martin Tobal, 2022. "Thermal Stress and Financial Distress: Extreme Temperatures and Firms’ Loan Defaults in Mexico," Working Papers 148, Red Nacional de Investigadores en Economía (RedNIE).
- Lehr, Jakob & Rehdanz, Katrin, 2024. "The effect of temperature on energy related CO2 emissions and economic performance in German industry," Energy Economics, Elsevier, vol. 138(C).
- Jesús Arellano-González & Miriam Juárez-Torres, 2025. "Temperature and quarterly economic activity: panel data evidence from Mexico," Working Papers 2025-02, Banco de México.
- Jimmy Karlsson, 2021. "Temperature and Exports: Evidence from the United States," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(2), pages 311-337, October.
- Brookes Gray, Harriet & Taraz, Vis & Halliday, Simon D., 2023.
"The impact of weather shocks on employment outcomes: evidence from South Africa,"
Environment and Development Economics, Cambridge University Press, vol. 28(3), pages 285-305, June.
- Harriet Brookes Gray & Vis Taraz & Simon D. Halliday, 2021. "The Impacts of Weather Shocks on Employment Outcomes: Evidence from South Africa," Bristol Economics Discussion Papers 21/752, School of Economics, University of Bristol, UK.
- Jefferson Muñoz & Alex Perez & Jaime Carabali, 2025. "Choques climáticos, productividad y desempeño de las firmas de la industria manufacturera en Colombia," Borradores de Economia 1298, Banco de la Republica de Colombia.
- Berg, Kimberly A. & Curtis, Chadwick C. & Mark, Nelson C., 2024.
"GDP and temperature: Evidence on cross-country response heterogeneity,"
European Economic Review, Elsevier, vol. 169(C).
- Kimberly A. Berg & Chadwick C. Curtis & Nelson Mark, 2023. "GDP and Temperature: Evidence on Cross-Country Response Heterogeneity," NBER Working Papers 31327, National Bureau of Economic Research, Inc.
- Giulia Valenti & Francesco Vona, 2024. "Hot Wages: How Do Heat Waves Change the Earnings Distribution?," Working Papers 2024.31, Fondazione Eni Enrico Mattei.
- Ouyang, Yanyan & Wang, Shengquan & Weng, Dabin & Zhang, Wenhao, 2024. "Temperature and domestic trade: City evidence from China," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 130-149.
- Gilli, Martino & Calcaterra, Matteo & Emmerling, Johannes & Granella, Francesco, 2024. "Climate change impacts on the within-country income distributions," Journal of Environmental Economics and Management, Elsevier, vol. 127(C).
- Holtermann, Linus & Rische, Marie-Christin, 2020. "The Subnational Effect of Temperature on Economic Production: A Disaggregated Analysis in European Regions," MPRA Paper 104606, University Library of Munich, Germany.
- Jonathan Colmer, 2021.
"Temperature, Labor Reallocation, and Industrial Production: Evidence from India,"
American Economic Journal: Applied Economics, American Economic Association, vol. 13(4), pages 101-124, October.
- Jonathan Colmer, 2018. "Temperature, labor reallocation and industrial production: evidence from India," CEP Discussion Papers dp1544, Centre for Economic Performance, LSE.
- Colmer, Jonathan, 2021. "Temperature, Labor Reallocation, and Industrial Production: Evidence from India," IZA Discussion Papers 14604, Institute of Labor Economics (IZA).
- Auteri, Monica & Mele, Marco & Ruble, Isabella & Magazzino, Cosimo, 2024. "The double sustainability: The link between government debt and renewable energy," The Journal of Economic Asymmetries, Elsevier, vol. 29(C).
- Preety Srivastava & Trong-Anh Trinh & Xiaohui Zhang, 2025. "Weather effects on academic performance: An analysis using administrative data," Papers 2025-07, Centre for Health Economics, Monash University.
- Osberghaus, Daniel & Schenker, Oliver, 2022. "International trade and the transmission of temperature shocks," ZEW Discussion Papers 22-035, ZEW - Leibniz Centre for European Economic Research.
More about this item
Keywords
Climate change; Physical risks; Bank loan quality;All these keywords.
JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012340. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.