Geographic diversification, climate risk, and bank lending: Evidence from farm loans
研究发现，地理多元化的银行在异常高温（气候风险）后，比地理集中的银行减少2-3%的小型农场贷款，通过优先核心市场、撤出高风险非核心区域，导致受影响地区出现贷款缺口。
This study examines how geographically diversified banks adjust lending practices in response to abnormal hot temperatures, a proxy for climate risk, and finds that these banks reduce small farm lending by 2–3 percent more than geographically constrained banks after a standard deviation increase in abnormal temperatures. Geographically diversified banks demonstrate proactive portfolio risk management by prioritizing credit in core markets and reallocating funds away from high-risk non-core regions, leaving lending gaps in affected counties. These findings highlight the importance of geographic diversification in building climate resiliency for banks while reducing the total credit available to farmers in a region.