@techreport{66c0e5816a084f9eb17e754c4bd9bfed,
title = "Understanding the Trembles of Nature: How Do Disaster Experiences Shape Bank Risk Taking?",
abstract = "This paper examines the impact of natural disaster experiences on banks{\textquoteright} business practices. Using earthquake and banking data for California, we find that banks that have had stronger earthquake experiences change their practices, both as a result of the natural disasters{\textquoteright} effects on local deposit supply and through changes in banks{\textquoteright} risk perceptions. These banks have a smaller exposure to real estate, maintain higher equity levels, and are more likely to lend to high-income borrowers. This paper confirms, therefore, that institutional memory exists in the banking sector and that banks and communities adapt to natural disasters interactively.",
keywords = "environmental economics, Financial Economics and Financial Manageemnt",
author = "Jaap Bos and Runliang Li",
year = "2017",
month = dec,
day = "14",
doi = "10.26481/umagsb.2017033",
language = "English",
series = "GSBE Research Memoranda",
publisher = "Maastricht University, Graduate School of Business and Economics",
number = "033",
address = "Netherlands",
type = "WorkingPaper",
institution = "Maastricht University, Graduate School of Business and Economics",
}