Mihaylova, IvaIvaMihaylovaBlumer, AndreasAndreasBlumer2023-04-132023-04-132022-11-01https://www.alexandria.unisg.ch/handle/20.500.14171/10810710.1080/20430795.2022.2140570Banks typically attempt to quantify climate-related risks, whether physical or transition ones, by adopting a top-down or a bottom-up analytical approach for the risk estimation of their borrowers. The two analytical approaches for risk estimation are regarded as mutually exclusive, when, in reality, they can complement each other in a mutually beneficial way. We discuss the challenges and opportunities of both analytical approaches with a focus on their applicability for commercial banks’ loans, and highlight directions for future research.enjournal article