{
  "title": "Bangladesh: Technical Assistance Report-Report on Climate Risk Analysis",
  "publication": "Technical Assistance Reports, May 17, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/technical-assistance-reports/issues/2024/05/17/bangladesh-technical-assistance-report-report-on-climate-risk-analysis-549132",
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  "summary": "A Technical Assistance (TA) mission was conducted in Dhaka, Bangladesh, from March 5 to 9, 2023, to assist authorities in setting up a framework to assess physical climate risk in the financial system.",
  "sections": [
    {
      "heading": "Mission and objectives",
      "content": "- A Technical Assistance (TA) mission was conducted in Dhaka, Bangladesh, from March 5 to 9, 2023.\n- Mission objectives:\n  - Propose a risk assessment framework tailored to available data, with a focus on the impact of floods on the banking sector.\n  - Take stock of financial and climate data availability and identify data gaps.\n  - Set up collaboration and data sharing mechanisms, taking into account legal obligations and confidentiality constraints, between multiple agencies."
    },
    {
      "heading": "Data and methodology",
      "content": "- Main climate and financial data sources were identified and existing data gaps were documented.\n- Preferred assessment approach:\n  - A micro approach based on high-granularity, borrower-level assessment using geo-located bank exposure data.\n- Alternative approaches:\n  - Two alternative options relying on more aggregate data (lower granularity or country-level exposures), which may produce estimates of lower precision and output of lower quality.\n- Framework choice guidance:\n  - The choice of framework should aim to strike the right balance between timeliness and quality of the analysis."
    },
    {
      "heading": "Key findings",
      "content": "- The micro approach (borrower-level, geo-located exposure data) is preferred for higher precision in climate risk assessment for the banking sector.\n- Alternatives that use aggregate or country-level exposures can be implemented where micro data are unavailable but may yield lower precision and lower-quality outputs.\n- Data availability and data sharing arrangements, constrained by legal obligations and confidentiality, are critical enablers for a granular climate risk assessment."
    },
    {
      "heading": "Policy recommendations and implementation priorities",
      "content": "- Prioritize collection and maintenance of high-granularity, geo-located bank exposure data to enable borrower-level climate risk assessment.\n- Establish collaboration and data sharing mechanisms across multiple agencies, explicitly accounting for legal obligations and confidentiality constraints.\n- Where micro data are not feasible, document limitations and expected reductions in precision when using more aggregate approaches.\n- Select a risk assessment framework that balances the trade-off between timeliness and the quality of analytical outputs.\n\n---\n\n Content in this bundle\n\n- tarea2024039 — PREFACE and Chapter 13\n  - tarea2024039 — PREFACE and Chapter 13 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - tarea2024039 — PREFACE and Chapter 13 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/technical-assistance-reports/issues/2024/05/17/bangladesh-technical-assistance-report-report-on-climate-risk-analysis-549132"
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    "Published: May 17, 2024",
    "Series: Technical Assistance Reports",
    "DOI: https://doi.org/10.5089/9798400275371.019",
    "A Technical Assistance (TA) mission was conducted in Dhaka, Bangladesh, from March 5 to 9, 2023.",
    "Mission objectives:",
    "Main climate and financial data sources were identified and existing data gaps were documented.",
    "Preferred assessment approach:",
    "Alternative approaches:",
    "Framework choice guidance:",
    "The micro approach (borrower-level, geo-located exposure data) is preferred for higher precision in climate risk assessment for the banking sector.",
    "Alternatives that use aggregate or country-level exposures can be implemented where micro data are unavailable but may yield lower precision and lower-quality outputs.",
    "Data availability and data sharing arrangements, constrained by legal obligations and confidentiality, are critical enablers for a granular climate risk assessment.",
    "Prioritize collection and maintenance of high-granularity, geo-located bank exposure data to enable borrower-level climate risk assessment.",
    "Establish collaboration and data sharing mechanisms across multiple agencies, explicitly accounting for legal obligations and confidentiality constraints.",
    "Where micro data are not feasible, document limitations and expected reductions in precision when using more aggregate approaches.",
    "Select a risk assessment framework that balances the trade-off between timeliness and the quality of analytical outputs.",
    "**tarea2024039 — PREFACE and Chapter 13**"
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