## Bangladesh: Technical Assistance Report-Report on Climate Risk Analysis

_Technical Assistance Reports, May 17, 2024_

## Source details

**Canonical URL:** [Bangladesh: Technical Assistance Report-Report on Climate Risk Analysis](https://www.imf.org/en/publications/technical-assistance-reports/issues/2024/05/17/bangladesh-technical-assistance-report-report-on-climate-risk-analysis-549132)

## Other formats

- [Markdown version](/en/publications/technical-assistance-reports/issues/2024/05/17/bangladesh-technical-assistance-report-report-on-climate-risk-analysis-549132/index.md)
- [Structured JSON version](/en/publications/technical-assistance-reports/issues/2024/05/17/bangladesh-technical-assistance-report-report-on-climate-risk-analysis-549132/index.json)
- [Bundle manifest](/en/publications/technical-assistance-reports/issues/2024/05/17/bangladesh-technical-assistance-report-report-on-climate-risk-analysis-549132/bundle-manifest.json)

## Bibliographic details
- Published: May 17, 2024
- Series: Technical Assistance Reports
- DOI: https://doi.org/10.5089/9798400275371.019

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### Mission and objectives
- A Technical Assistance (TA) mission was conducted in Dhaka, Bangladesh, from March 5 to 9, 2023.
- Mission objectives:
  - Propose a risk assessment framework tailored to available data, with a focus on the impact of floods on the banking sector.
  - Take stock of financial and climate data availability and identify data gaps.
  - Set up collaboration and data sharing mechanisms, taking into account legal obligations and confidentiality constraints, between multiple agencies.

### Data and methodology
- Main climate and financial data sources were identified and existing data gaps were documented.
- Preferred assessment approach:
  - A micro approach based on high-granularity, borrower-level assessment using geo-located bank exposure data.
- Alternative approaches:
  - 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.
- Framework choice guidance:
  - The choice of framework should aim to strike the right balance between timeliness and quality of the analysis.

### Key findings
- 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.

### Policy recommendations and implementation priorities
- 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.

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## Content in this bundle

- **tarea2024039 — PREFACE and Chapter 13**
  - [tarea2024039 — PREFACE and Chapter 13 (Markdown version)](/-/media/files/publications/tar/2024/english/tarea2024039.pdf.md){rel="alternate" type="text/markdown"}
  - [tarea2024039 — PREFACE and Chapter 13 (PDF)](/-/media/files/publications/tar/2024/english/tarea2024039.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/technical-assistance-reports/issues/2024/05/17/bangladesh-technical-assistance-report-report-on-climate-risk-analysis-549132_