Climate change and financial system: International evidences and policy implications for Vietnam

Abstract

Climate change is an emergency issue that is having significant imnpacts to the global citizens and
entities in many aspects. Beside direct impacts from changes in the environment conditions with increasing
extreme natural disasters, climate change also imposes considerable risks to the financial system from
physical losses, reducing productivity as well as uncertainties from the transition of the economy toword
sustainable development. Vietnam is one of the countries that is significantly exposed to the climate change,
yet having low adaptation ability. In this study, we provide a systematic review on the impacts of climate
change to the financial system and examine the international experience on the policies to tackle climaterelated risks to the financial stability from several central banks globally. Consequently, we propose somepolicy implications to the Vietnamese regulators accordingly