Climate Risk in Finance

Climate Risk Stress Testing for Regional Banks

Bottom-up physical and transition risk stress tests with six regional development banks, paired with downscaled hazard data for their lending footprints.

OngoingClimate Risk in FinanceBandung, West Java

About the project

Regional development banks (BPD) lend heavily into agriculture, fisheries and small enterprise — sectors with concentrated physical climate exposure. Most have limited capacity for scenario analysis.

The project builds downscaled flood and drought exposure layers matched to bank portfolios, runs bottom-up stress tests, and translates the output into credit policy recommendations.

Outputs

Hazard-exposure data layers

Dataset

Stress testing methodology note

Guideline