Decoding climate-related risks in sovereign bond pricing: a global perspective

10/08/2025 European Central Bank Central banks

Climate change poses a significant risk to financial stability by impacting sovereign credit risk. Quantifying the exact impact is difficult as climate risk encompasses different components– transition risk and physical risk – with some of these, as well as the policies to address them, playing out over a long time horizon. In this paper, we use a large panel of 52 developed and developing economies over two decades to empirically investigate the extent to which climate risks influence sovereign yields.

Decoding climate-related risks in sovereign bond pricing: a global perspective

10/08/2025 European Central Bank Central banks

Climate change poses a significant risk to financial stability by impacting sovereign credit risk. Quantifying the exact impact is difficult as climate risk encompasses different components– transition risk and physical risk – with some of these, as well as the policies to address them, playing out over a long time horizon. In this paper, we use a large panel of 52 developed and developing economies over two decades to empirically investigate the extent to which climate risks influence sovereign yields.

A comparative review of worldwide on-site banking supervision trends through the lens of IMF/World Bank FSAP

10/08/2025 European Central Bank Central banks

The IMF working paper, “Good Supervision: lessons from the field,” examines the effectiveness of On-site Inspections (OSIs) as a supervisory tool in advanced economies (AEs), drawing insights from 60 Basel Core Principles (BCPs) assessments conducted between 2012 and June 2023. Despite their critical role in ensuring financial stability, OSIs are identified as the second-largest weakness among supervisory techniques in AEs.

Can Labour’s plan to fund deprived communities see off Reform? What the evidence shows

10/07/2025 The Conversation UK

Sonicpuss/ShutterstockMore than a year after the UK government abandoned the phrase “levelling up”, it has now launched a fresh strategy to distribute funding to disadvantaged communities. The promise to these deprived areas is three-pronged: investment in community facilities, enhancing public spaces like parks, and revitalising town centres and high streets.

Pages

Subscribe to Front page feed