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This study investigated the causal interactions between macroprudential policy, measured by the Macroprudential Policy Index (MPI), and financial cycles represented by the Aggregate Financial Cycle (AFC) and the Credit and Asset Prices Financial Cycle (CAFC) in South Africa from 1970q1 to 2023q2. Additionally, the study explored the effects of macroprudential policy during different phases of financial cycles. Using the time-varying Granger-causality model, the study found that the MPI Granger-caused financial cycles during the 2003/07 credit boom in South Africa, while the AFC and CAFC Granger-caused macroprudential policy during the Covid-19-induced collapse of financial markets. The results suggest that macroprudential policy is employed more proactively during financial booms and more reactively during financial busts in South Africa. The Markov switching dynamic regression model used to assess the MPI's effects revealed that macroprudential policy's effectiveness is stronger during financial busts and weaker during financial booms in South Africa. This is because financial institutions in South Africa tend to resist stricter regulations during boom phases due to heightened optimism about future prospects. Conversely, they are more receptive to stimulatory interventions during bust phases. Based on these findings, it is recommended that the South African Reserve Bank and the Prudential Authority use macroprudential policy more assertively during financial booms to enhance its effectiveness. This could involve setting more stringent parameters upon activating macroprudential policy tools or complementing macroprudential policy with monetary policy during financial booms. [ABSTRACT FROM AUTHOR]

Transitioning to a low‐carbon economy will entail sweeping transformations of energy and economic systems. A growing research body has raised concerns about the effect of such strain on financial stability. This literature on "financial transition risk" has highlighted that the conjunction of climate policy, technological change and shifts in consumption patterns may propagate to financial markets. In extreme cases, these dynamics may result in a "Climate‐Minsky" moment with systemic implications. The field has developed quickly, covering many methods and research questions. While this expansion in literature is advantageous when studying a complex issue like the low‐carbon transition, it also comes with downsides. The large number of methods hampers result comparison, and the integration of research designs. It also makes it difficult to provide a synthetic view of results in the literature as well as identify remaining uncertainties. To bridge these gaps, I propose a critical review of the literature. I examine three sub‐fields: the asset stranding literature, the direct assessment of transition risks through prospective models and the financial empirics of the low‐carbon transition. I expound their main results, critically assess underlying methodologies and propose a framework to compare results. The review ends by suggesting some avenues for future research. [ABSTRACT FROM AUTHOR]

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We explore the potential outcomes for financial stability when using peer‐to‐peer lenders to finance economic activity. Combining Random Regression Forests, a machine‐learning process, with an agent‐based model, we perform simulations on artificial economies with various degrees of adoption of peer‐to‐peer lending. We find that as peer‐to‐peer lenders proliferate, there is increased financial instability, lower GDP and higher unemployment. On the other hand, peer‐to‐peer lending increases the total volume of loans given out but demonstrates a preference towards consumer loans (over corporate loans), which has a negative effect in the long run. Finally, introducing peer‐to‐peer lenders increases the access of the unbanked to services which conventional banking is not able to offer within the extant regulatory framework. Our results can help policymakers as they address the issue of regulation in the peer‐to‐peer finance industry. [ABSTRACT FROM AUTHOR]

This paper highlights the procyclical and unstable behaviour of mutual funds, characterized by a varying sensitivity on common asset pricing factors. It proposes a novel factor model that allows for regime changes associated with macroeconomic and financial state variables. Estimated on a panel covering 825 US equity mutual funds over a period of 30 years, it appears that the yield curve, the dividend yield, short term interest rates and the industrial production coincide with regimes switches in the Fama–French factors. Furthermore, the estimated regimes coincide with financial crises and economic downturns, thus confirming the procyclical behaviour of mutual funds' returns. These findings, coupled with the emerging systemic role of mutual funds, promote the consideration for a specific macroprudential regulatory framework targeted at the mutual fund industry. [ABSTRACT FROM AUTHOR]

Financial institutions operating in a stable financial system seem to be willing to support the realization of the sustainable development goals (SDGs). This view assumes that financial stability is crucial for sustainable development. We investigate the effect of financial stability on sustainable development. We use a unique financial stability index, sustainable development index and four SDG indicators. We analyse 26 countries from 2011 to 2018 using the system GMM method. The findings of the sustainable development index analysis show that financial stability has a significant effect on the level of sustainable development and the effect is negative in Asian countries. European and Asian countries have a high sustainable development index compared to African countries. The result of the individual SDG analyses show that financial stability has a significant effect on SDG3. Financial stability has a negative effect on SDG10 in Asian countries and a negative effect on SDG3 during periods of economic prosperity. Financial stability has a positive effect on SDG3 and SDG7 in countries where the banking system have high capital buffer. The results show that the effect of financial stability on sustainable development depends on how sustainable development is measured. [ABSTRACT FROM AUTHOR]

Global uncertainty is a time when unexpected events occur that have a negative impact on a company. Unforeseen world situations lead to economic disaster. Therefore, decisions must be made quickly, correctly, and appropriately so as not to affect the entire operation of the organization. This is a clear action to reduce negative impacts. A crisis is an event that can destroy a company, its employees, its products, and its services. and the company's financial health, such as the spread of the coronavirus. Serious financial conditions can result from an economic disaster that is not managed. Events that have wide-ranging social impacts are considered crises. The financial reputation of commercial companies may be permanently damaged by this crisis. For this reason, this study aims to examine whether economic factors affect the financial stability of family businesses. Structural equation modeling techniques were used to analyze the data. There are more than 269 family companies listed on the Thai Stock Exchange. (Stock Exchange of Thailand: SET) Research results show the financial impact of Thai family businesses on business factors. The global economy is important in the current economic crisis. As a result, preparing to deal with both negative and positive economic situations may be related to and affect the ability of family businesses to maintain financial stability amid global economic instability. This study examines the financial stability of family businesses by selecting key factors including net profit margin (NPF), return on assets (ROA), and return on equity (ROE) in an unstable economy in Thailand. In the Stock Exchange of Thailand by the study of economic factors and financial stability of family businesses in Thailand. The empirical results using the Panel Regression Model and Robustness Tests exhibit that P>[z] and sectoral indices have a relationship and effect in the short term, and the coefficients in the period of t-1 are significantly positive and negative at the statistical significance at the 0.01, 0.05 and 0.10 level. In the long term have a relationship and effect with Banking, Finance, Economics and Business. [ABSTRACT FROM AUTHOR]

This study explores the correlation between economic growth and financial stability among upper-middle-income countries in APEC, such as Indonesia, China, Malaysia, Mexico, Peru, Russia, and Thailand from 2013 to 2023. It employs a simultaneous equation approach. The motivation for this research lies in securing the well-being of future generations, as effectively managing current economic growth and financial stability will foster investment in future welfare. This lays the groundwork for sustainable and inclusive economic progress over time. Key findings indicate a mutually beneficial relationship between financial stability and economic growth. The study underscores the importance of bolstering financial stability through measures like increasing capital adequacy ratios and credit private sector, while also managing credit card usage and interest rates. Moreover, it suggests that fostering economic growth requires enhancing credit private sector, alongside managing interest rates, unemployment, and poverty. The study recommends that governments of upper-middleincome APEC countries implement macroprudential policies effectively. This strategic approach aims to uphold both financial stability and interconnected economic growth, thereby mitigating systemic risks that could otherwise harm the economy. [ABSTRACT FROM AUTHOR]

The experience of flexible inflation targeting in ASEAN‐5 has been favorable. The present paper shows improvements in macroeconomic outcomes consistent with the framework's mandated objectives: lower levels and volatility of inflation, more stable economic growth, and a well‐functioning financial system. Using difference‐in‐difference approaches, we find that, for ASEAN‐5 and developing countries, the inflation targeting framework mainly benefits adopters in terms of reducing inflation levels. In response to the challenges emanating from capital flow volatility and domestic financial imbalances, over the past 20 years, ASEAN‐5 policy frameworks have continuously evolved to incorporate various policy tools. These include, among others, foreign exchange intervention, macroprudential policy, and capital flow measures. A multitude of policy tools is arguably one of the key factors contributing to sound macroeconomic outcomes during the post‐targeting periods. [ABSTRACT FROM AUTHOR]

Copyright of Modern Economic Science is the property of Modern Economic Science Editorial Office and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Central bank independence (CBI) has been one of the most significant regulatory state developments of the last three decades. Following the 2008 financial crisis, many central bank mandates were extended to include a responsibility for financial stability. Some commentators claim this jeopardizes CBI by drawing central banks into contested political issues that can impact financial stability, in what we term an independence in decline thesis. Through a detailed study of the Bank of England's financial stability communications employing the Comparative Agendas Project (CAP) codebook, we subject this independence in decline thesis to scrutiny. We show that since the extension of the Bank's mandate in 2011, Bank officials have discussed a wider range of more contentious policy issues. However, these communications appear to date to have largely reinforced the Bank's reputation for technical competence and political neutrality. In this sense, central bank "communicative agency" can be deployed to protect CBI performatively, while CBI can in turn be studied and understood as an ongoing communicative performance act. We find that repoliticization is a more contingent process than much central banking literature has allowed for, while financial stability communications are a potentially powerful regulatory instrument deserving of more scholarly attention. [ABSTRACT FROM AUTHOR]

The down turning events from the beginning of the XXIst century, starting with the 2008 crisis and then the COVID-19 pandemic, shortly followed by Russia's invasion in Ukraine, exacerbated some preexisting vulnerabilities and created new risks. In this context, the financial stability in the Eastern European states (we will consider Eastern Europe in Winston Churchill's terms, namely those countries on the eastern flank of the Iron Curtain) represents an important debating issue for both policy-makers and researchers. Therefore, the present paper aims to quantify the financial stability and to determine the factors that can influence it. In doing so, we first have to establish what we consider to be financial stability: what it means at the microeconomic level (focusing on the behaviour of the citizens) and what it means at the macroeconomic level (looking at the role of states in ensuring financial stability). It is important to note that the analysis we wish to undertake will be at a regional rather than at an overall European level, focusing on the Eastern European countries that have joined the European structures. We will present, by means of statistical analysis, the importance that both economic freedom and education have in increasing the financial stability of Eastern European citizens, taking into account the evolution of the financial stability of Eastern European citizens over the last years. In order to perform an analysis for more countries and over a longer period of time, we will utilize panel data analysis. We will observe the role that both variables play in ensuring a greater level of financial stability for the people from these countries. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to evaluate the interaction between bank capital and explicit deposit insurance scheme (DIS) on the financial stability of Islamic and conventional banks. Design/methodology/approach: The author's sample covers 52 Islamic and 108 conventional banks operating in 12 countries over the period 2000–2021 using the random-effects generalized least squares (RE-GLS) regression technique. Findings: The author's results reveal that bank capital negatively mediates the relationship between explicit DIS and the financial stability of both Islamic and conventional banks. Additionally, explicit DIS has a positive impact on the financial stability of conventional banks. However, the results are mixed for Islamic banks, as the effect of explicit DIS is positive for the Middle East and North Africa (MENA) region but negative for the South and Southeast Asia (SSA) region. Finally, the interaction between explicit DIS and the COVID-19 pandemic has a negative effect on conventional banks operating in the MENA region, while it has a positive effect on Islamic banks operating in the SSA region. Research limitations/implications: The findings of this paper have important implications for regulators in evaluating DIS policies and in anticipating any potential adverse consequences that might arise for both Islamic and conventional banks in normal and crisis times. Policymakers should strive to preserve the benefits of DIS while mitigating the destabilizing effects of its interaction with capital ratios. Originality/value: This study introduces a novel aspect by examining the mediating role of capital in the relationship between explicit DIS and the financial stability of Islamic and conventional banks. [ABSTRACT FROM AUTHOR]

The purpose of this study was to examine the key determinants of corporate governance in selected financial institutions. Using South African financial institutions as a unit of analysis, namely insurance companies and banks, the study employed a panel generalised method of moments (GMM) model using a data set for the period from 2007 to 2020, to assess key determinants of corporate governance proxies identified for the study. The study sampled 21 South African financial institutions composed of Johannesburg Securities Exchange (JSE) listed and unlisted banks and insurance companies. To measure corporate governance, the study developed a composite index employing the principal components analysis (PCA) method. The findings revealed a positive and significant association between the corporate governance index and its lagged variables. Furthermore, a significant and positive link was found between the efficiency ratio and corporate governance index and capital adequacy ratio (CAR); corporate governance index and firm size; corporate governance index and leverage ratio (LEV); and corporate governance index and return on assets (ROA). However, a negative and significant correlation was found between financial stability and the corporate governance index. The link between return on equity (ROE) and corporate governance was insignificant. A small cohort of financial institutions was excluded because it was challenging to obtain complete annual reports to extract the required data. The study was limited to only five corporate governance measures, namely board diversity, board size, board composition (independent non-executive directors and non-executive directors), and board remuneration. The findings are anticipated to persuade developing countries to pay special attention to how corporate governance is measured. [ABSTRACT FROM AUTHOR]

The NPAs are considered as an important parameter to judge the performance and financial health of banks. The level of NPAs is one of the drivers of financial stability and growth of the banking sector. This research explores an empirical approach to the analysis of Non-Performing Assets (NPAs) with special reference to different banks. NPAs adversely affect lending activity of banks as non-recovery of loan instalments as also interest on loan portfolio. Non - recovery of loans also hurts the profit ability of banks. The outcome of the study would help the concerned more particularly the managers of banks to device appropriate management strategies to have NPA within the manageable limit to keep the performance of the banks in a healthier condition. To analyse and minimize the risk involved in different sectors of NPA. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Research in Finance & Accounting is the property of Journal of Research in Finance & Accounting and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Rapid advances in digital technology are revolutionizing the financial landscape. The rise of fintech has the potential to make financial systems more efficient and competitive and broaden financial inclusion. With greater technological complexity, however, fintech also poses potential systemic risks. In this paper, I use a novel dataset to trace the development of fintech (excluding cryptocurrencies) and empirically assess its impact on financial stability in a panel of 198 countries over the period 2012–2020. The analysis provides interesting insights into how fintech correlates with financial stability: (1) the impact magnitude and statistical significance of fintech depend on the type of instrument (digital lending vs. digital capital raising); (2) the overall effect of all fintech instruments together turns out to be negative because of the overwhelming share of digital lending in total, albeit statistically insignificant; and (3) while digital capital raising is estimated to have a positive effect on financial stability in advanced economies, its effect is negative in developing countries. Fintech is still small compared to traditional institutions, but rapidly expanding in riskier segments of the financial sector and creating new challenges for policymakers. [ABSTRACT FROM AUTHOR]

We study the impact of bank credit on firm productivity. We exploit a matched firm‐bank database, covering all the credit relationships of Italian corporations, to measure idiosyncratic supply‐side shocks to credit availability and estimate a production model augmented with financial frictions. We find the effect of credit supply to be asymmetric: contractions harm TFP growth, halting productivity‐enhancing activities; positive credit supply shocks have limited effects. This points toward a role of financial stability in preserving productivity growth. [ABSTRACT FROM AUTHOR]

Climate change poses significant challenges across various sectors, particularly within the financial realm, where the stability of banking systems is paramount. Non-performing loans (NPLs), as critical indicators of financial health, may be considerably influenced by climatic factors. This study delves into the impact of climate change on NPLs within the Chinese banking sector from 2010 to 2022, focusing on the influence of greenhouse gas (GHG) emissions. Utilising a comprehensive dataset and advanced econometric models (including panel quantile regression, sensitivity analysis and balanced panel data models), this research illuminates the intricate relationship between environmental changes and financial health. The research also discovers a significant climate change impact on NPLs, with increased GHG emissions leading to varied responses among banks. This variation reflects the different risk profiles and adaptive capacities of banks to climate-related financial risks. Banks demonstrating higher adaptability to climate change exhibit lower NPL ratios, underscoring the importance of strategic risk management and proactive adaptation in the banking sector. The research significantly advances the understanding of the financial implications of climate change and the interplay of climate variables with financial stability. It offers crucial insights for policy makers and banking institutions, emphasising the need to integrate climate risk into financial decision making and develop robust climate-resilient strategies for the banking sector's protection. In conclusion, the study enriches the discourse on the financial impacts of climate change and serves as an informative guide for stakeholders in navigating and addressing these emerging challenges. It underscores the necessity of embedding environmental considerations within banking practices to promote a resilient and sustainable financial system in the face of environmental uncertainties. [ABSTRACT FROM AUTHOR]

This study delves into the complex interplay between economic prosperity and environmental sustainability, focusing on how the shift toward cleaner energy affects financial stability in China from 2008 to 2020 by employing econometric model. The research addresses the challenge of fostering economic growth while managing environmental concerns amid efforts to transition to sustainable energy sources. The findings are promising, revealing that energy transition not only has a positive impact on financial stability but also that investments in renewable energy bolster economic resilience. Additionally, the study underscores the amplifying effect of policy support in enhancing the efficacy of energy transition measures. The implications for policymakers are significant, suggesting that integrating financial regulations with sustainability objectives could pave the way for achieving robust economic growth that is both resilient and environmentally responsible. [ABSTRACT FROM AUTHOR]

Financial flexibility affects the ability of higher education institutions (HEIs) to ensure financial stability in conditions of uncertainty and crisis. Financial flexibility results from sound decision-making by university management and requires thorough assessment. This article aims to evaluate the financial flexibility of HEIs based on an integral indicator and the correlation of financial flexibility indicators. The integral indicator of financial flexibility includes groups of sensitivity, responsiveness, maneuverability, and costeffectiveness indicators. This indicator is calculated as the average value of these factors. It comprises seventeen indicators, excluding those requiring managerial data for calculation, such as the share of administrative expenses to total income, the share of utility costs to fixed expenses, and a group of indicators responding to the price factor. The article tests the methodology for assessing the financial flexibility of HEIs based on the integral indicator for classical, polytechnic, pedagogical, and other institutions. To eliminate the scale effect and standardize the calculated HEI indicators to a comparable panel sample, normalization was conducted, and the logarithm of the indicators was calculated to unify the data. The average value of the integral financial flexibility indicator for HEIs from 2018-2022 was determined to be 0.22, relative to the typical group of HEIs (classical – 0.21, polytechnic – 0.23, pedagogical and others – 0.21) and separately by years. Using the «Data Analysis» add-in in Microsoft Excel, the correlation of the indicators with the integral financial flexibility indicator was determined. The results of the correlation analysis showed that the degree of association between indicators of financial flexibility and the integral indicator is insignificant and does not exceed 0.6. [ABSTRACT FROM AUTHOR]

The article establishes that the effective management of banking risks should be based on the relevant fundamental research on the formation of an effective mechanism for regulating financial relations in the banking sector. The purpose of the study was to substantiate the theoretical and methodological foundations of effective banking risk management and develop practical recommendations for improving its effectiveness in the context of digitalization. The study utilized various scientific methods, including financial stability indicator analysis, economic standards evaluation, financial condition coefficient calculation, and testing the CAMELS system within the digitalization context. Bank risk management is crucial for sustainable development. Studying risk management enhances the Russian banking sector's financial stability. However, risk management in stable conditions differs significantly from digitalization. In the digital era, objectives, resource availability, support, and decision-making time change. The goal becomes avoiding major performance deviations caused by risks in active and passive operations and bank activities. [ABSTRACT FROM AUTHOR]

Commodity-exporting economies display procyclicality with the price of commodity exports. However, the evidence for the relative importance of commodity price shocks for aggregate fluctuations remains inconclusive. Using Russian data from 2001 to 2018 we estimate a small open economy New Keynesian model with a banking system and leveraged domestic firms who default on their unsecured domestic debt. We show that allowing default rates to vary endogenously over the business cycle amplifies the estimated contribution of commodity price shocks. Endogenous default introduces time-varying wedges that amplify the response of commodity price shocks through demand and income effects rather than the relative price effects that are found in the country risk-premium, balance sheet, and financial accelerator channels. We find that the contribution of commodity prices to explaining fluctuations in GDP rises from 2.5 to 33.6% while for deposits and non-performing loans, it increases from 5.3% and 1.6% to 71.3% and 60.4%, respectively. [ABSTRACT FROM AUTHOR]

Our study investigates a model of general equilibrium banking that incorporates moral hazard and incentive mechanisms for bank risk-taking, with a particular focus on deposit market competition. Our findings reveal that when banks compete perfectly in the deposit market, it leads to maximal welfare and an optimal level of bank failure risk. This outcome remains valid even if the risk of failure for competitive banks is higher than that of banks with monopoly rents, and it is not affected by social costs associated with bank failures. Our model suggests that there is no trade-off between bank competition and financial stability. Our results support the empirical findings of Carlson, Correia, and Luck (J Polit Econ 130(2): 462–520, 2022). [ABSTRACT FROM AUTHOR]

This research presents a systematic review of a substantial body of high-quality research articles on Default Prediction Models published from 2015 to 2024. It is a comprehensive analysis of a DPM wide spectrum approaches including Textual Models, Systematic Review Studies, Hybrid Models, Intelligent Models and Statistical Models. The reason behind this study is rooted in the critical need to mitigate and understand the credit default risk that poses a significant threat to financial stability worldwide. By employing an evidence-based approach and methodological rigorously, this research critically evaluates the gaps, effectiveness and evolution in existing DPM methodologies. It is not only synthesized the current landscape of DPM study but also identified the direction for the future research, by offering novel insights and bridging theoretical gaps for enhancing the strategies of credit risk management. This study stands out by focusing on high citation research from top tier publishers, ensuring the quality and relevance of its analysis. The findings of this study have profound implications for stakeholders across the financial sector, including bankers, investors, regulatory bodies, and researchers. It aims to advance financial stability by providing a comprehensive overview of DPM advancements and pointing towards areas that require further exploration. By doing so, it contributes significantly to the development of more effective and sophisticated DPM strategies, thereby enhancing the robustness of financial institutions against potential defaults.

Prior to the enactment of the Financial Sector Regulation Act (FSR Act), the regulation of cooperation and collaboration between the South African Reserve Bank (SARB) and other financial role players was not done for the purpose of protecting financial stability or promoting market integrity. The SARB, the Financial Services Board (FSB) and the Bank Supervision Department (BSD) were required by the Banks Act to harmonise supervisory actions and to share relevant information for operational purposes. The lack of adequate cooperation and collaboration arrangements to promote, protect, enhance and maintain financial stability and market integrity gave rise to regulatory gaps and overlapping functions in the financial sector. The provisions for cooperation and collaboration contained in the Banks Act, the Financial Markets Act and the Financial Services Board Act, and the establishment of the Financial Sector Contingency Forum (FSCF) were not adequate to foster effective cooperation and collaboration between the SARB, the BSD, the FSB and other financial role players.

This paper examines the influence of the new 15 % Value Added Tax (VAT) enforcement on non-financial listed companies in Saudi Arabia. By comparing financial data from 2019, before the VAT implementation and the COVID-19 pandemic, with data from 2020, during both the VAT increase and the pandemic, the research aims to uncover the consequences of this tax policy change. Utilizing charts, tables, and an event study analysis approach with the Autoregressive Moving Average (ARMA) model, we investigated key financial indicators such as Shareholders' Equity (SE), Total Income (TI), Total Revenues (TR), Net Income (NI), Total Expenses (TE), Other Changes in Operating Activity (COA), and Cash at the End of the Period (CEP). The findings reveal significant financial impacts, highlighting companies' challenges due to the increased tax burden. Shareholders' Equity dropped from an average of 11.55 million to 4.57 million, and Total Income and Total Revenues decreased from approximately 1.73 million to 316,234 and from 1.95 million to 331,605, respectively. Net Income sharply declined from 406,109 to 74,624, and Total Expenses decreased from about 1.18 million to 223,495. Other Changes in Operating Activity shifted from a negative mean of −168,936 to a positive 523,520, and Cash at the End of the Period fell from 1.99 million to 666,663. These results suggest that the VAT increase has significantly strained companies' financial performance, emphasizing the need to consider such tax reforms carefully, particularly in developing countries. The study concludes that while the VAT increase aims to enhance government revenues, it imposes substantial financial strain on companies, potentially leading to long-term economic repercussions. Policymakers should consider these implications and implement practical measures to optimize the VAT system and support business resilience in the face of such reforms.

This paper examines the academic research on climate transition risk. The objective of this study is to provide descriptive characteristics of research trends in the field of climate transition risk and make recommendations based on major bibliometric data such as authors, journals, citation figures, methodology, geographical focus and author’s location. The systematic literature review methodology was used to obtain information on publications and intellectual structure related to climate transition risk from the Scopus bibliographic database until November 2023. A search strategy was developed to screen the title for eligibility, using the abstract and full text where needed. The review showed that annual evolution has increased significantly in recent years. Findings revealed a marked European and Chinese dominance with little contribution from Global South in this research field with limited contributions from Global South in terms of focus and authors and organizations contributions. The predominant data source is data-set indices, with limited methodological diversity in climate transition risk research. Findings also showed that authors from universities, research institutes and central banks are contributing to climate transition risk literature. The main themes in climate transition risk research are banking, climate policy, stock market, and asset price and performance. The impacts of climate change on interconnectedness, systemic risk and financial stability were widely covered in overlapping publications.