VoxTalks Economics cover image

VoxTalks Economics

S7 Ep14: Disasters and bank financing

Mar 20, 2024
Bank experts Steven Ongena and Anna Pestova discuss how banks handle disasters like wars, pandemics, and natural calamities. They explore the impact of armed conflicts on financial systems, the effects of sanctions on banks, and strategies to manage risks from pandemics and natural disasters. The podcast highlights the importance of banks in providing crucial credit during emergencies and the need to enhance regulatory frameworks for disaster preparedness.
22:15

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Quick takeaways

  • Banks face challenges from wars and sanctions, affecting credit supply and lending behavior.
  • Geographical diversification and preparedness influence how banks respond to disasters, impacting income inequality.

Deep dives

Increasing Frequency of Disasters

Disasters, including wars, pandemics, and natural disasters, have been on the rise in recent years. An increase in wars and sanctions has been noted, along with the impact of pandemics like COVID-19. The link between natural disasters and climate change has led to a doubling in their frequency and impact over the last few decades.

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