AN ASSESSMENT OF THE IMPACT OF GLOBAL CLIMATE CHANGE AND NATURAL DISASTERS ON THE FINANCIAL SYSTEM OF BUSINESSES AND THE PUBLIC IN THE WORLD AND TURKEY

Abstract

Disasters caused by climate change and natural disasters cause crises in the world and in Turkey. As
climate change and natural disasters affect economic life, these effects are also felt on a scale of
individuals, businesses, States and globally. In the study, the disadvantages caused by disasters in
the financial system, which occupies an important place in the economic system, were evaluated. In
addition to evaluating their impact on the banking and insurance sector, financial instruments used
for precautionary purposes were also mentioned. However, climate change and natural disasters
also disrupt the liquidity balance of businesses. For these reasons, businesses become unable to pay
their commercial debts, especially financial liabilities (tax-insurance). The effect of disasters on
public financing is in terms of public revenues that cannot be collected, while the financial structure
is also disrupted by the formation of additional expenditures in the public sector due to disasters that
occur. This causes crises both in the public sector and in businesses. The study also discussed the
negative effects of global warming and natural disasters on the financial sector within the scope of
the economy. Measures and recommendations have been included to minimize the negative
consequences of disasters, albeit a little bit, against the disruptions caused by these effects in the
long term.