Climate transition risk can lead to stranded assets, jeopardizing the stability of financial institutions that hold such assets. Using the global games framework, we explore to introduce strategic complementarities to banks' stranded asset dynamics. In our model, banks en masse may either hoard the stranded assets for too long or liquidate such assets prematurely in a disorderly manner. While both results may not be socially optimal, we analyze the role of policy in implementing the optimal responses which balance the social costs and benefits of banks' decisions. Policymaker can use capital requirement as a tool to fix the potential inefficiency. Our findings suggest that when climate transition risk is low, policymakers should discourage banks' excessive risk- taking for stranded assets to reduce climate damages; otherwise, they should guard against banks' excessive de-risking for such assets to avoid financial instability.