Brown Bag Seminar: Carbon Risk and Syndicated Loans: A Network Analysis Approach

Speaker
Ferdinando Marrazza - Università degli Studi di Verona

Date
Dec 2, 2025 - Time: 12:00 Aula Vaona

The indirect emissions that are financed by financial institutions represent a source

of risk. Transition risk, albeit not being directly borne by banks, may indirectly af-

fect financial intermediaries via their financing activities. This study contributes to

this literature by giving a novel insight on the structure of this risk: by means of syndi-

cated loans, a network empirical model is built to relate the lenders with their financed

emissions while also considering their respective position within the loan market. The

results show that the most central financial intermediaries are associated with higher

shares of emissions. Several robustness checks as well as different ways to account for

emissions are considered, confirming the main results. The conclusions drawn from

this paper may be relevant for practitioners and regulators alike.

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