| Abstract [eng] |
SUMMARY Master thesis consists of 93 pages, 18 tables, 7 figures, 2 formulas and 39 references. The major purpose of this master thesis is to provide theoretical evidence on how climate risks affect the banking sector, and the method banks adopt to mitigate its effect. The thesis consists of three main parts; the analysis of literature, the research and its results, a conclusion and recommendations. Literature analysis reviews the theoretical aspects of climate change, presents the main concepts of climate change and its related risks, causes of climate change, the impact of climate change on banking sector as well as climate change impact on banks’ financial stability. Following the literature analysis, the author carried out the empirical research methodology among different companies of the world. The main aim of the both questionnaire and secondary data i.e Central bank of Nigeria's annual stability reports and financial statements of accounts cover the period from 2010 to 2020 were to find out why climate risks affect the banking sector, and the method banks adopt to mitigate its effect. Moreover, the results of the research were compared to the similar studies performed in other European countries. The results of the research were statistically processed with the SPSS version 26 and E-views 10. In order to establish the impact of climate change on banking sector one-way analysis of variance (ANOVA) and multiple regression techniques were used. The research revealed that the financial risk, physical risk, liquidity risk and operational risks due to climate change significantly impacts banking sector performance and the methods for managing climate risk significantly impact banking sector. The conclusions and recommendations summarise the main concepts of literature analysis as well as the results of the research. The researcher affirms that the results of the study could give useful guidelines to the banking sector and Apex bank should do more to ensure that banks effectively manage the risks of climate change on their assets to ensure financial stability in the country. |
