There are generally two types of climate-related risk. First, physical risks: the impact today on insurance liabilities and the value of financial assets arising from climate-related events, such as floods and storms that damage property or disrupt trade. Second, transition risk: the financial risks that could result from the process of adjustment towards a low-carbon economy.
Going forward we hope that Banks will introduce new products and services crafted to the needs and income streams of poor borrowers which will enable self sustaining financial inclusion. 30. As Banking is a public good this is essential in the interests of Public Policy. BIS central bankers’ speeches  7