Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203308
Authors: 
Noth, Felix
Schüwer, Ulrich
Year of Publication: 
2018
Series/Report no.: 
SAFE Working Paper No. 167
Abstract: 
We show that property damages from weather-related natural disasters significantly weaken the stability of banks with business activities in affected regions, as re ected 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 during that time.
Subjects: 
natural disasters
bank stability
non-performing assets
bank performance
JEL: 
G21
Q54
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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