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This paper aims to assess the level of credit risk (from the perspective of default risk) among Polish households associated with the physical risks of climate change. In order to determine the potential impact of the physical risk of climate change on household credit risk, we conducted CAWI interviews with 1,006 borrowers residing in different Polish voivodeships (to account for heterogeneity of credit exposures to extreme weather events). According to these respondents, wildfires and storms in Poland are the greatest source of physical risk of climate change. In the event of a wildfire or storm, approximately 13% of borrowers would not be able to repay their loans while not being insured, which potentially increases banks’ credit risk and exposes banks to losses. However, we find that households underestimate the credit risk that could arise from a drought.

The purpose of this study is to evaluate the safety of individuals’ behaviour in the cyber world, especially when using financial services. The article focuses on knowledge of cybersecurity issues, cyber risk awareness and respondents’ self-assessment as potential determinants of individual behaviour. The data obtained from a survey of a representative group of Polish citizens during the second wave of the COVID-19 pandemic was analysed. Ordinal logistic regression and instrumental variable analysis confirm the existence of a positive relationship between knowledge and awareness of cyber risk and safe behaviour in the cyber world. Older generations exhibit safer behaviour which may be linked to their life experience; however, the results do not confirm that experiencing a loss due to cyber risk convinces individuals to use Internet-based solutions in a safer manner. Therefore, educational campaigns should be expanded to include cyber risk issues and tailored to the needs of various users.

Global warming poses many challenges for all economic entities. The two main challenges facing all countries are climate change mitigation and adaptation. Central banks also face difficult tasks in this context. The difficulty stems from the impact of climate change on all sectors of the economy. Central banking has to deal with the new challenges created by climate change for monetary policy, macroprudential policy, but also climate education. The aim of the article is to verify to what extent climate change is considered in the central bank’s main objective – monetary policy. Therefore, the article examines the frequency with which central banks refer to climate issues in their inflation reports. Applying a text mining approach to the analysis of 459 inflation reports published by 10 central banks from post-communist countries between 2013 and 2023 confirms that climate issues make up a small part of inflation reports. On the positive side, the frequency of central banks’ references to climate issues increased after 2022 (in particular, the frequency of words in the area of transition risks). The study also found that the challenges of climate change are motivating central banks to take various actions to spread climate education in society. The trends identified point to an urgent need for central banks to pay more attention to climate risks in their activity – monetary policies, prudential policies and climate education. [ABSTRACT FROM AUTHOR]

This paper aims to assess the level of credit risk (from the perspective of default risk) among Polish households associated with the physical risks of climate change. In order to determine the potential impact of the physical risk of climate change on household credit risk, we conducted CAWI interviews with 1,006 borrowers residing in different Polish voivodeships (to account for heterogeneity of credit exposures to extreme weather events). According to these respondents, wildfires and storms in Poland are the greatest source of physical risk of climate change. In the event of a wildfire or storm, approximately 13% of borrowers would not be able to repay their loans while not being insured, which potentially increases banks' credit risk and exposes banks to losses. However, we find that households underestimate the credit risk that could arise from a drought. [ABSTRACT FROM AUTHOR]

We verify the potential impact of credit-enhanced monetary policy rule on inflation, GDP and credit dynamics in Turkey (2002Q1—2018Q3), where the Turkish Cental Bank takes into account financial stability in its inflation-targeting strategy. We estimate interest rates from two monetary policy rules (classic and augmented with the exogenous credit-to-GDP gap) with time-varying parameters (TVP) and assess their performance in a TVP-VAR model. The results show that after the global crisis both observed interest rates and those estimated from the Taylor-rule impact inflation and the GDP in a similar way. The central bank's monetary policy after 2010 was in line with the Taylor rule and took into account cyclical systemic risk with increased strength in the monetary transmission mechanism. Yet, before the crisis, both types of Taylor rules indicate that the bank's monetary policy should have been more restrictive. [ABSTRACT FROM AUTHOR]

The aim of the paper is to analyze new sources of systemic risk in the negative interest rates environment. The study reviews possible consequences of negative interest rates policy (NIRP) for financial stability. This paper tries to fulfill above goal by implementing an overall market stress indicator for the four economies with negative interest rates - Eurozone, Denmark, Sweden and Switzerland and other 14 countries with positive rates. In order to achieve this, we choose six segments of the market on which negative interest rates policy (NIRP) may have a significant impact. According to our results, problem of the NIRP has been so far limited and concern mostly bond market. Our research indicates macroprudential policy should be more active in NIRP than in positive interest rate environment and demand coordination with monetary policy. [ABSTRACT FROM AUTHOR]