<![CDATA[This study investigates the nexus between extreme weather events, flooding, and credit risk among 212 rural banks (BPRs) in West Java, Indonesia, from 2022 to 2024. Using panel data and Pooled Ordinary Least Squares (POLS) with robust standard errors, the research distinguishes between the impacts of chronic climatic fluctuations and acute disaster shocks. The analysis incorporates bank-level and macroeconomic factors as controls to ensure methodological rigor. Our stepwise robustness estimations reveal a highly nuanced transmission mechanism. Extreme weather frequency exhibits a consistently positive and significant relationship with Non-Performing Loans, proving it acts as an autonomous driver of credit risk by disrupting borrower cash flows. Conversely, the direct impact of flooding becomes statistically redundant once bank-level controls are integrated into the regression. This empirical divergence indicates that while atmospheric anomalies directly impair loan portfolios, the consequences of hydrological disasters are heavily conditioned by internal bank characteristics like profitability and capitalization buffers.]]>
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