Abstract
ABSTRACT This study explores the impact of climate policy uncertainty (CPU) on the systemic risk of Chinese listed banks. We calculate China’s CPU index from 2010 to 2022 through text analysis of newspaper articles. Using data from 42 listed banks, we document that CPU increases bank systemic risk and this impact is heterogeneous. Moreover, external shocks exacerbate the impact, while robust internal indicators and strong financial regulation reduce it. Further analysis indicates that this effect is nonlinear. This study provides several new aspects to enrich the understanding of this impact, thereby providing more comprehensive ideas for policymakers to ensure bank stability.
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