The Recognition of Climate Change Effects as a Risk to Financial Stability in Mexico
ICCLJ, Volume 13, Issue 3, 2019
18 Pages Posted: 22 Sep 2020
Date Written: September 21, 2020
During the last years, central banks have realized how necessary and urgent it is to acknowledge climate change for preserving financial and monetary stability in their countries. Internationally speaking, progress has been made in its recognition thanks to the joined efforts between scientists, economists, financiers, policymakers, and academics. The Recognition of Climate-Change Effects as a Risk to Financial Stability in Mexico: the Role of the Central Bank has been a pioneering paper in the Mexican economy. Influenced by the British and Norwegian business and thought leaderships, the author of this research anticipated potential destructive and unfortunate events that could happen if the Mexican Central Bank (Banco de Mexico) failed to implement regulatory measures for safeguarding the domestic financial system. He created and illustrated a model called the Non-Payment Chain Due to Climate-Change Effects, and managed to translate soft law into hard law by proposing legal action against financial institutions that missed to handle the involved risks.
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