Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/247913 
Year of Publication: 
2021
Series/Report no.: 
Staff Report No. 990
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
Not very. We find that weather disasters over the last quarter century had insignificant or small effects on U.S. banks' performance. This stability seems endogenous rather than a mere reflection of federal aid. Disasters increase loan demand, which offsets losses and actually boosts profits at larger banks. Local banks tend to avoid mortgage lending where floods are more common than official flood maps would predict, suggesting that local knowledge may also mitigate disaster impacts.
Subjects: 
hurricanes
wildfires
floods
climate change
weather disasters
FEMA
banks
financial stability
local knowledge
JEL: 
G21
H84
Document Type: 
Working Paper

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