Transmission Mechanism and Macroprudential Policy Framework of Climate Financial Risk: Theoretical Construction and Application Challenges

Zhiwei Zhang

doi:10.62051/ijgem.v10n6.14

Authors

Zhiwei Zhang Shenzhen University, Shenzhen, China

DOI:

https://doi.org/10.62051/ijgem.v10n6.14

Keywords:

Climate Financial Risk, Macroprudential Policy, Physical Risk

Abstract

This article takes climate financial risk prevention and control as the core of research, uses literature review, case analysis and other methods to clarify the transmission mechanism and specific path of climate physical risk and transformation risk, explain the core essence and coordination mechanism of the macro-prudential policy framework of climate financial risk, and analyse the application challenges faced by the existing policy framework in practice in combination with the actual domestic supervision. Based on China's institutional environment, drawing on the experience of international supervision, I put forward targeted improvement suggestions: build an independent, legalised and normalised macro-prudential framework for climate transition risks, pilot the implementation of the internal rating method of climate risks of financial institutions, and build a macro-prudential linkage mechanism for cross-border transformation risks. The research can provide reference for optimising the macro-prudential supervision system of climate financial risks in China, preventing systemic climate financial risks, and helping the coordinated promotion of green transformation and financial stability.

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References

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