Meteorological Disaster Impact on Systemic Financial Risk: A Dual Perspective of Risk Transmission and Risk Governance

Meteorological disaster impact has emerged as a critical exogenous factor threatening the stability of financial system. Exploring the mechanisms through which this impact influences systemic financial risk, along with corresponding governance pathways, holds significant practical relevance. Adopting a dual perspective of risk transmission and risk governance, this article investigates the meteorological disaster impact on systemic financial risk. The main findings are as follows: First, meteorological disaster impact significantly elevates systemic financial risk. This occurs both directly by inducing liquidity shortages within financial institutions and indirectly by disrupting the interconnected structure of financial markets. Second, digital transformation, as an internal governance mechanism, and climate risk stress testing, as an external governance mechanism, are both effective in mitigating the systemic financial risk induced by the meteorological disaster impact. Third, the impact of meteorological disasters on the financial system exhibits pronounced heterogeneity across regional, industry, and internal characteristics. Notably, the impact tends to influence systemic financial risk primarily through the indirect channel of disrupting the interconnected structure of financial markets. This article contributes to the literature by integrating meteorological disaster impact into a unified framework of risk transmission and risk governance.