Climate Risk and Bank Liquidity Creation in MENA Region: A Dual Threshold–Quantile Approach
Аннотация
This study investigates the relationship between climate risk and bank liquidity creation (LC) in MENA using a dual threshold–quantile method, complimented by a quantile-on-quantile approach. Using data from 126 banks in 19 MENA countries over the period 2006–2022, we find that climate risk has a positive effect on LC only above a certain threshold. Furthermore, this effect shows heterogeneity, varying across different levels of both climate risk and LC. Our findings contribute to the literature by providing empirical evidence on the complex interplay between climate risk and banking liquidity under varying economic conditions.
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Литература
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