(Finance) – The houses most exposed to the risk of floods could lose almost half of their value. There European Central Bank estimates, in fact, a collapse of 45% in just one year of the value of buildings in areas exposed to floods. This is what he reports to Bloomberg Fernando de la Mora, managing director of Alvarez & Marsal, anticipating the stress test scenarios that the ECB will publish this week. Scenarios that, in light of the introduction of the climate risk factor, would see German and Dutch banks among the most exposed.
THE new ECB tests they stand out as one of the most detailed exercises on climate risk, and will also include the impact of elements such as higher emissions prices or the impact of home energy efficiency on the mortgage market. THE physical risks – including extreme weather events such as floods – are predicted to be among the heaviest. A recent ECB study found that the 22% of euro area banks have a high exposure, species in Austria, Holland, Germany And France, towards the risk of floods, while the fires would represent the predominant threat in Spain And Italy.
As announced by the ECB, however, the tests this year will not have a direct impact on banks’ capital requirements.