Photo by: Bloomberg
A Climate Vulnerability Assessment by Australia’s five largest banks show that climate change may pose future financial challenges for both banks and their borrowers. The study, released by Australia’s banking regulator, shows that lenders would be more vulnerable to economic downturns in the coming decades, but that the impact could be absorbed. Flooding is the most expensive but also the most predictable and preventable form of natural disaster, Insurance Council of Australia CEO Andrew Hall said after the release of the study. Resiliency and mitigation might be better strategies than government-funded reinsurance schemes, he argued. Photograph: Bloomberg