Dear colleagues,

As I assume the position as the first Managing Editor of Journal of Financial Regulation and Risk Management, I would like to cordially invite you to contribute to the journal with your theoretical, empirical and practical academic research.

The journal is committed to excellence in scholarship and is intended to combine policy relevance with an academic, in-depth analytical approach to financial regulation and the management of risks. The journal particularly seeks to publish articles of practical relevance to banks, investment firms and insurers, as well as to regulators and central banks, giving priority to articles on cryptocurrencies, blockchain technologies, regulatory technology (RegTech), financial technology (FinTech), insurance technology (InsurTech), financial risks from climate change, and the Environmental, Social and Governance (ESG) risks.

As a former Senior Supervisor at the Prudential Regulation Authority (Bank of England) and the Financial Conduct Authority, in the first few issues of the journal I would particularly be keen to receive articles with respect to the prudential regulation of emerging financial risks from climate change including empirical and theoretical research on banks, insurers and the wider financial system, which are high on the global regulatory agenda. Climate change creates financial risks to the safety and soundness of banks, insurers and the wider financial system, posing a significant threat to financial stability. Climate-related financial and sustainability risks are already starting to crystallise and have the potential to increase substantially in the future. For instance, physical risks that arise from increasing the severity and frequency of climate and weather-related events may lead to a reduction in asset values, a fall in profitability and an increase in the cost of settling underwriting losses for insurers. On the other hand, adjustment towards a carbon-neutral economy may prompt a reassessment of asset values, a fluctuation in energy prices, and a deterioration of the creditworthiness of borrowers, potentially leading to credit losses.

While there is a pressing need for central banks, regulators and financial institutions to accelerate their capacity to assess and manage such financial risks that may result from climate change, academic research will be a key impetus to drive and support the ongoing efforts of the financial sector and the regulatory bodies in building capacity to address these risks. However, there exists a gap in the existing literature both in terms of empirical and theoretical perspectives.

It is against this backdrop that we would like the journal to encourage, stimulate, advance and broaden theoretical and empirical research on financial and sustainability risks from climate change and how these risks should be regulated by prudential regulators and central banks, thereby filling an important gap in the existing literature.

The editorial team is looking forward to receiving your articles. Thank you very much for your support.