Proceedings of the Jepara International Conference on Education and Social Science 2024 (JIC 2024)

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The Impact of Climate Change, Agriculture Financing, and Bank Product Diversification on Bank Risk

Authors
Silviana Pebruary1, *, Hadi Ismanto1, Fatchur Rohman1, Isna Amalia1
1Universitas Islam Nahdlatul Ulama, Jepara, Indonesia
*Corresponding author.
Corresponding Author
Silviana Pebruary
Available Online 17 November 2025.
DOI
10.2991/978-2-38476-483-9_30How to use a DOI?
Keywords
Agriculture financing; bank risk; climate change; product diversification
Abstract

The study aims to analyze climate change, agricultural sector financing, and product diversification as risks in Indonesian banking. This study used a sample of 34 banks listed on the Indonesian stock exchange. The data was taken from 2014 to 2023, and the total observations used were 1,288 bank trials. We analyzed the collected data using the FEM panel regression method. The results of the study revealed that climate change had a positive effect on the banking industry. On the other hand, the agricultural sector's financing had a negative impact. The findings of this study have helped clarify the link between financial stability and environmental factors. Banks should consider incorporating climate-based risk analysis in their credit decisions. They should also focus more on supporting stable sectors like agriculture.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the Jepara International Conference on Education and Social Science 2024 (JIC 2024)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
17 November 2025
ISBN
978-2-38476-483-9
ISSN
2352-5398
DOI
10.2991/978-2-38476-483-9_30How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Silviana Pebruary
AU  - Hadi Ismanto
AU  - Fatchur Rohman
AU  - Isna Amalia
PY  - 2025
DA  - 2025/11/17
TI  - The Impact of Climate Change, Agriculture Financing, and Bank Product Diversification on Bank Risk
BT  - Proceedings of the Jepara International Conference on Education and Social Science 2024 (JIC 2024)
PB  - Atlantis Press
SP  - 235
EP  - 244
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-483-9_30
DO  - 10.2991/978-2-38476-483-9_30
ID  - Pebruary2025
ER  -