기후리스크가 금융안정에 미치는 영향

Abstract

[Purpose] This study systematically and comprehensively analyzed the impact of climate risk on the financial stability of domestic financial institutions, based on recent advances in climate risk research. [Methodology] We initially examined the effects of climate change－related risks on the entire South Korean financial industry and financial companies using quantitative methods. Building upon these findings, we conducted expert FGI analysis and examined the role of deposit insurance institutions in the context of climate risks. [Findings] The empirical analysis results revealed that physical risks significantly deteriorate the soundness of the banking sector, while they do not have a significant impact on the insurance sector. Furthermore, transition risks were found to enhance the soundness of banks, as banks that have not undergone significant transitions appear to benefit from the absence of associated transition costs, resulting in improved soundness. Among banks, it was observed that companies in the traditional banking sector are more sensitive to physical risks compared to internet banks. The analysis results of this study confirm that among climate change－related risks, physical risks have a significant negative impact on the long－term financial soundness of the banking sector. When comparing internet banks to traditional banks, it was quantitatively established that climate risks had a more adverse effect on traditional banks. [Implications] First, the establishment and enhancement of a proactive climate risk－based financial stability model unique to Korea. Second, the development and refinement of guidelines for ESG investments in the financial industry. Third, this study proposes that financial institutions take on specific roles in the development of policies related to products that can hedge climate risks that are difficult for the private sector to bear. This should also include the calculation of differential insurance premium rates, taking into account the level of climate risk management by financial companies in the future.