20240516-IMF-Bangladesh_Technical_Assistance_Report-Report_on_Climate_Risk_Analysis_17页_368kb

Agnese Carella and Javier Urunuela from IMF's Monetary and Capital Markets (MCM) Department conducted a technical assistance scoping mission in Bangladesh between March 5-9, 2023, to establish a framework for assessing climate-related risks in the financial sector. The Bangladesh Bank requested this assistance under the Resilience and Sustainability Facility (RSF) to meet climate financing needs by integrating climate risk analysis into financial stability measures by December 2024.

The mission recommended three approaches to framework implementation:

1. Preferable micro approach using high-granularity exposure data mapped to geographical grids
2. Alternative micro approach aggregated by Thana administrative units
3. Macro approach using whole-economy-wide aggregate data that may omit granular risks

Data collection gaps primarily involve bank-level geospatial data on loans, physical asset valuations, and sector-specific vulnerability functions. Key stakeholders like CEGIS (climate data) and BB departments (financial data) need to coordinate efforts.

Priority three-action recommendations were produced: enhancing data quality, establishing collaboration mechanisms, and refining the risk framework. Follow-up missions scheduled for March 2024 may continue this work. The framework aims to improve Bangladesh's ability to assess flood impact on banking sectors and contribute to its climate change adaptation goals.