In the Eye of the Storm: Financial Intermediation in the Face of Natural Disasters

This dissertation studies what financial and political institutions can do to reduce the impact of natural disasters. In an epoch of climate change and more frequent disasters, the importance of this topic is self-evident. The dissertation finds countries with better governance quality performing better in disaster relief. Therefore, it is meaningful for countries to focus on good governance rather than a particular ideology. Additionally, the dissertation finds that disasters can change demographic patterns and banks’ willingness to lend in the long term. In the short term, banks can overcome natural disaster and meanwhile serve their communities by choosing optimal asset structures.