Wobblier eurozone banks most exposed to climate change
Lenders with lower CET1 ratios and weaker returns could face more credit defaults from global warming
The eurozone’s weaker-capitalised and less profitable banks are the most exposed to credit defaults stemming from climate change, according to a joint report from the European Central Bank (ECB) and European Systemic Risk Board (ESRB).
The median exposure to climate-vulnerable firms is six times higher among the least well-capitalised banks by Common Equity Tier 1 (CET1) capital ratio relative to
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