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Corresponding Author:
Panagiota Papadimitri, University of Southampton, Southampton, United Kingdom

Coauthors:
Fotios Pasiouras, MBS School of Business, Montpellier, France

Climate Related Financial Policies and Bank Value: Cross-Country Evidence

July 8, 2026
JEL classification: G21; G28; Q54
Keywords: Bank Value; Climate Finance; Regulations

Abstract

The present study examines the effect of climate-related financial policies on the bank market to book value. In more detail, we consider an index of climate-related financial policies, that reflects the extent of regulatory actions in terms of green prudential regulations, green credit allocation policies, green financial guidelines, other green disclosure requirements, green bonds taxonomy and issuing. Using a cross-country sample, we document a positive association between this regulatory index and bank value. Additionally, we find that this relationship depends on the country’s climate risk, its vulnerability to climate disruptions and its readiness to leverage investments for adaptive actions.


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of the Genoa Chamber of Commerce


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