---
title: Climate Risks in Real Estate
url: https://www.ml-quant.com/papers/ssrn/5120353/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5120353
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5120353
featured: 2025-02-19
citations: unknown
topic: Risk, Credit & Banking
---


# Climate Risks in Real Estate

The study shows how physical climate risks, specifically river floodings, can affect the credit risk parameters and internal capital calibration of banks.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5120353
- Identifier: SSRN 5120353
- Released: 2025-02-06
- First featured: Quant Letter No. 85 (2025-02-19): https://www.ml-quant.com/issues/2025-02-19/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking

## Related

- [Modelling the term-structure of default risk under IFRS 9 within a multistate regression framework](https://www.ml-quant.com/papers/arxiv/2502.14479/): A study comparing three loan behavior modeling techniques finds multinomial logistic regression to be the most effective, potentially improving loss reserve estimates in banking.
- [How important are ESG factors for banks' cost of debt? An empirical investigation](https://www.ml-quant.com/papers/ssrn/5270535/): The paper explores the link between banks' ESG scores and their funding costs, concluding that higher ESG ratings positively influence funding costs and that changes in ESG ratings significantly impact banks' bond yields.
- [The Determinants of Net Interest Margin in the Turkish Banking Sector: Does Bank Ownership Matter?](https://www.ml-quant.com/papers/arxiv/2506.04384/): A study on the Turkish banking sector identifies operation diversity, credit risk, and operating costs as key factors influencing net interest margin, with impacts varying across different bank types.
- [Financial Instruments for Decarbonization: Likely Pathways for the Romanian Economy](https://www.ml-quant.com/papers/ssrn/4440511/): The study highlights key financial tools in Romania, like green bonds and loans, which can help transition to a low-carbon economy, with banks playing a major role.
- [Asset Prices, Collateral and Bank Lending: The Case of COVID-19 and Real Estate](https://www.ml-quant.com/papers/ssrn/4470421/): The paper investigates the euro area's banking system's role in transmitting asset price shocks to credit during the Covid-19 crisis, highlighting significant frictions and a decrease in lending related to real estate collateral.
- [Financial Fragilities and Risk-taking of Corporate Bond Funds in the Aftermath of Central Bank Policy Interventions](https://www.ml-quant.com/papers/ssrn/4463970/): It finds that central bank asset purchases during the pandemic led corporate bond fund managers to take more risks, affecting market stability.
