Climate and Deposit Insurance
Jonggu Kang (Advisor, Financial Stability Department, Bank of Korea) and Sangchul Ryoo (Kyung Hee University, Seoul) will present their proposals on how deposit insurers could internalise climate risk externalities through their risk premium models.
In their paper, the authors present a theoretical framework for the internalisation of a climate externality, which may induce financial institutions to reduce loans to carbon-emitting companies and increase loans to environmentally friendly companies. In addition, the authors discuss alternative options, including setting limits on loans to carbon-emitting companies, and they examine the advisable pace of adjusting premiums.
Online registration is now available here using your eBIS credentials! The registration deadline is 10 January 2025.
Should you have any questions on the IADI Research webinar, please contact the IADI Secretariat.