<p>Over the past two decades, the South of France has been increasingly exposed to climate-related hazards, experiencing several severe meteorological and hydrological disasters. Among these, the 2015 flash flood and the 2020 Storm Alex stand out as the two most devastating events, causing catastrophic economic and human losses. However, the transmission of these risks to banking institutions is not necessarily direct, particularly due to how credit is granted in France and the presence of risk-pooling mechanisms. Using data from 213 French regional banks over the period from 2000 to 2021, this article aims to analyze how bank customers and regional banks have responded to these extreme events, given the specificities of the French system. Using the Difference-in-Differences method, we observe that following a disaster, customers located in the affected regions withdraw cash to cover the costs associated with the extreme physical event. Similarly, banks come to the aid of customers by providing additional liquidity through loans. Despite the challenges posed by the advent of disasters (notably credit risk), French regional banks have managed to maintain a relatively stable level of profitability. Accordingly, this study sheds new light on the macro-financial transmission channels of physical climate risks, and thus on the need to implement policies to strengthen the resilience of banking systems to such climatic events.</p>