Post by Ashot Petrosyan

Proud to share that the Central Bank of Armenia, in cooperation with the The World Bank Group, has published the report “Climate Transition Risk Stress Testing of the Armenian Banking Sector.” This is an important milestone in Armenia’s sustainable finance journey. The report provides a structured assessment of how climate transition risks may affect Armenia’s economy, sectoral dynamics, and the banking sector, with a particular focus on credit risk, expected losses, and capital adequacy under different transition scenarios. For financial regulators and policymakers, such work is especially important because climate-related risks are no longer distant or abstract. They are becoming part of the real risk landscape that financial systems need to understand, measure, and manage. This report contributes to building a more forward-looking, evidence-based, and resilient financial sector in Armenia. My sincere thanks to the Central Bank of Armenia team, especially Gayane Vardanyan and Henrik M., for their major contribution and dedication, and to the World Bank team, especially Milica Nikolic, for the excellent cooperation, technical expertise, and support throughout this work. The full report is available here: https://lnkd.in/dFBfYXxD #SustainableFinance #ClimateRisk #FinancialStability #TransitionRisk #CentralBanking