Assessing the impacts of climate change to financial stability: evidence from China

Purpose Climate change not only causes serious economic losses but also influences financial stability. The related research is still at the initial stage. This paper aims to examine and explore impact of climate on stability in China. Design/methodology/approach first uses vector autoregression model study applies NARDL assess nonlinear asymmetric effect China’s using monthly data from 2002 2018. Findings results show that both positive negative shocks do harm In short term, greater than current period, less lag period. long bring larger adjustments relative shocks. Moreover, compared with short-term effect, more destructive run. Originality/value provides a quantitative reference for assessing nexus between perspective, which beneficial understanding climate-related risks.