Banking

The banking sector also plays a central role in the economy. Banks facilitate the transfer of funds from those who save (depositors) to those in need of financial capital (in the form of loans and investments). By doing so, banks enable personal and corporate investment that contribute to demand and productivity growth.

Watch the video below for a brief overview of climate-related risks to the banking system.

Video attribution: “Climate Change and the Banking Sector” by Todd Thexton, Financial Impact of Climate Change, Adaptation Learning Network is licensed under CC BY 4.0.

Read Section 3.3 Financial risks from climate change facing the UK banking sector (pp. 21 – 37) in Transition in thinking: The impact of climate change on the UK banking sector.