Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154738
Authors: 
Noth, Felix
Schüwer, Ulrich
Year of Publication: 
2017
Series/Report no.: 
SAFE Working Paper Series 167
Abstract: 
We document that natural disasters significantly weaken the stability of banks with business activities in affected regions, as reflected in lower z-scores, higher probabilities of default, higher non-performing assets ratios, higher foreclosure ratios, lower returns on assets and lower bank equity ratios. The effects are economically relevant and suggest that insurance payments and public aid programs do not sufficiently protect bank borrowers against financial difficulties. We also find that the adverse effects on bank stability dissolve after some years if no further disasters occur in the meantime.
Subjects: 
natural disasters
bank stability
non-performing assets
bank performance
JEL: 
G21
Q54
Document Type: 
Working Paper

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