Presentation - 9th Roundtable on financing water, David-Jan Jansen, Senior Economist, De Nederlandsche Bank (DNB)

1. Floods and financial stability
David-Jan Jansen
(De Nederlandsche Bank & Vrije Universiteit Amsterdam)
OECD and UN-Water
Ninth meeting of the Roundtable on Financing Water
9 February 2023
Views expressed in this presentation do not necessarily coincide with those of DNB or the Eurosystem.
Contact: d.jansen@dnb.nl
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2. Financial stability perspective
Will the financial system be able to support the real economy?
Quantifying impact of climate-related shocks
Transition (climate policy, technology)
Physical (extreme weather events)
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3. Flood risk in the Netherlands
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4. Estimating impact of floods on bank capital (work in progress)
Areas at risk
A (unprotected) in red
B (protected) in light gray
1 At-risk area may be unprotected or protected
2 Damages not covered by most insurance policies
3 Government support (Wts) possible—but
discretionary
4 Household buffers—but may be insufficient
5 Explore impact on banks’ credit risk
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5. Why?
Quantifying climate financial risks (system-wide perspective)
Create awareness
Support policy discussions
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6. Thank you!
Questions welcome at: d.jansen@dnb.nl
Homepage: https://sites.google.com/site/djansenresearch/
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