Stranded Assets as a Source of Systemic Risk for the Financial Stability Cover Image

Блокираните активи като източник на системен риск за финансовата стабилност
Stranded Assets as a Source of Systemic Risk for the Financial Stability

Author(s): Tzvetelina Simeonova
Subject(s): Politics / Political Sciences, Politics, Economy, Business Economy / Management, Economic policy, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: stranded assets; systemic risk; financial stability
Summary/Abstract: In the context of climate change and the ambitious goal of the Paris Agreement, the phenomenon of "stranded assets" is becoming increasingly important. This goes beyond the risk for the individual financial institution and becomes one of the main factors of systemic risk. The current report reviews the conceptual framework for stranded assets in the context of climate and environment, examines their potential effects on the financial system, and the reasons for their transformation into a systemic risk. Various options for reducing their impact are also proposed.

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