Finance and Economics Discussion SeriesFederal Reserve Board.Washington.D.C.ISSN 1936-2854 (Print)ISSN 2767-3898 (Online)Spatially Mapping Banks'Commercial Industrial LoanExposures:Including an Application to Climate-Related RisksBenjamin N.Dennis,Gurubala Kotta,Caroline Conley Norris2025-006Please cite this paper as:Dennis,Benjamin N.,Gurubala Kotta,and Caroline Conley Norris (2025)."Spatially Map-ping Banks'Commercial Industrial Loan Exposures:Including an Application to Climate-Related Risks,"Finance and Economics Discussion Series 2025-006.Washington:Board ofGovernors of the Federal Reserve System,https://doi.org/10.17016/FEDS.2025.006.NOTE:Staff working papers in the Finance and Economics Discussion Series (FEDS)are preliminarymaterials circulated to stimulate discussion and critical comment.The analysis and conclusions set forthare those of the authors and do not indicate concurrence by other members of the research staff or theBoard of Governors.References in publications to the Finance and Economics Discussion Series (other thanacknowledgement)should be cleared with the author(s)to protect the tentative character of these papers.Spatially Mapping Banks'CommercialIndustrial Loan Exposures:Including anApplication to Climate-Related Risks*Benjamin Dennis:Gurubala Kotta and Caroline Conley NorrissDecember 2024AbstractThe correlation of the spatial distribution of banking exposureswith changes in spatial patterns of economic activity (e.g.,internalmigration,changes in agglomeration patterns,climate change,etc.)may have financial stability implications.We therefore study the spa-tial distribution of large U.S.banks'commercial and industrial (C&I)lending portfolios.We construct a novel dataset that augments FRY-14Q regulatory data with borrower microdata for a more granularunderstanding of where banks'exposures are located by looking be-yond headquarters to the location of facilities.We find that banks areexposed to almost all U.S.counties,with clustered exposure in certaingeographies.We then use our dataset for a climate-related applica-tion by analyzing what fraction of C&I loans have been extended tofirms that operate in areas vulnerable to physical risks,identifying.for*We thank seminar participants at the Federal Reserve Board for their helpful com-ments.Special thanks to Celso Brunetti,Ricardo Correa,Michael Kiley,and Adele Morrisfor detailed comments and helpful suggestions,and Julia Silbert for excellent research as-sistance.The analysis and conclusions set forth are our own and do not necessarily reflectthe views of the Board of Governors or the staff of the Federal Reserve System.Allremaining errors are our own.Federal Reserve Board,E-mail:benjamin.dennis@frb.govUniversity of California,Davis,E-mail:gskotta@ucdavis.eduSFederal Reserve Board,E-mail:caroline.norris@frb.gov1