Greater climate vulnerability appears to have a sizable positive effect on sovereign bond yields, while greater resilience to climate change has an offsetting effect.
Vulnerability to the direct effects of climate change matter more than climate risk resilience in the implications for sovereign borrowing costs.
While the ultimate resolution of COVID-19 may lead to a market correction as uncertainty declines, there may be some permanent effects on financial markets and capital flows.
There are multiple ways by which central banks and monetary authorities can actively address climate-related financial risks and support the scaling up of sustainable finance.
Current account surplus shocks emanating from the People's Republic of China, Japan, and Germany have strong positive effects on regional growth.
Progressive integration of clearly defined environmental, social, and governance factors through regulatory measures offers economic benefits.
Central banks are in a powerful position to support the development of green finance models and enforce adequate pricing of environmental and carbon risk by financial institutions.
The People's Republic of China’s financial system has become more complex and interconnected but foreign participation remains low.
Aligning the financial sector with sustainable development is key to achieving green transformation in Asia.
Developed countries’ long-term interest rates have influenced long-term government bond yields in emerging Asia.
Governments must climate-proof their economies and public finances or potentially face an ever-worsening spiral of climate vulnerability and unsustainable debt burdens.
This handbook brings together leading scholars, policy makers, and practitioners to provide a comprehensive and cutting-edge guide to Asia’s financial institutions, markets, and systems.