VoxEU Column
by Mikhail Mamonov, Steven Ongena, Anna Pestova
Disasters are mostly unexpected, but during recent decades the world has witnessed a rising incidence of disasters of various types, including armed conflicts, infectious diseases, and natural calamities. This rise is expected to continue in the future due to political and demographic developments, nature loss, and climate change. The third LTI Report studies how banks are affected by unexpected disasters and how banks can prepare once the occurrence of disasters becomes more routine and thus expected. The authors review the nascent theoretical and empirical literature in this area and present complementary empirical analyses at bank and country levels.