EPISODE · Jun 12, 2026 · 6 MIN
How Climate Stress Tests Are Reshaping Bank Lending
from Climate Economics with Fexingo: Carbon Pricing, Green Policy, and Sustainability Costs · host Fexingo
Episode 47 of Climate Economics with Fexingo: Lucas and Luna drill into the Federal Reserve's 2025 climate scenario analysis — the one that forced the six largest U.S. banks to model loan losses under a 3-degree warming path. They walk through the specific assumptions: flood risk on coastal commercial real estate in Miami-Dade, drought impacts on agricultural loans in California's Central Valley, and how JPMorgan, Citi, and Wells Fargo are already adjusting credit policies. They also explore the tension between short-term profitability and long-term risk pricing, and why some community banks are fighting back. If you've ever wondered whether climate risk is actually priced into your mortgage or business loan, this episode gives you the concrete mechanics. #ClimateScenarioAnalysis #FederalReserve #BankStressTests #ClimateRisk #LendingPolicy #CommercialRealEstate #MiamiDade #CentralValley #FloodRisk #DroughtRisk #JPMorgan #Citigroup #WellsFargo #CreditRisk #ClimateEconomics #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo
What this episode covers
Episode 47 of Climate Economics with Fexingo: Lucas and Luna drill into the Federal Reserve's 2025 climate scenario analysis — the one that forced the six largest U.S. banks to model loan losses under a 3-degree warming path. They walk through the specific assumptions: flood risk on coastal commercial real estate in Miami-Dade, drought impacts on agricultural loans in California's Central Valley, and how JPMorgan, Citi, and Wells Fargo are already adjusting credit policies. They also explore the tension between short-term profitability and long-term risk pricing, and why some community banks are fighting back. If you've ever wondered whether climate risk is actually priced into your mortgage or business loan, this episode gives you the concrete mechanics. #ClimateScenarioAnalysis #FederalReserve #BankStressTests #ClimateRisk #LendingPolicy #CommercialRealEstate #MiamiDade #CentralValley #FloodRisk #DroughtRisk #JPMorgan #Citigroup #WellsFargo #CreditRisk #ClimateEconomics #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo
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How Climate Stress Tests Are Reshaping Bank Lending
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