Why banking regulators are sweating under climate stress tests

The Central Bank of Kenya. PHOTO | DENNIS ONSONGO | NMG

The Central Bank of Kenya (CBK) says that climate-related financial risks can significantly increase bank credit risks as a result of severe floods, drought, landslides and wildfires that destroy borrowers’ assets or impair supply chains.

With a high reliance on physical collateral in lending in emerging markets, measures put in place to mitigate climate change can also increase credit risks from collateral assets that become stranded.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.