EconPapers    
Economics at your fingertips  
 

Green finance policies and bank systemic risk: Evidence from listed banks in China

Chenkai Tian, Xinyan Shen and Yangjingzhuo Liu

Finance Research Letters, 2025, vol. 80, issue C

Abstract: This study examines the impact of green finance policies on bank systemic risk. The effects of these policies on bank systemic risk are determined by macroeconomic and regulatory factors. Green finance policies significantly reduce systemic risk during economic expansions but increase it during contractions. Loose monetary policies amplify the risk associated with green finance, whereas tight monetary policies mitigate it. Green finance policies are linked to banks’ increased bank risk-taking behavior, which raises systemic risk. Furthermore, we analyze the differential impacts in developed financial markets. Our findings highlight the necessity of policy cooperation in balancing sustainability goals with financial stability.

Keywords: Green finance policy; Bank systemic risk; Macroprudential regulation (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325006488
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006488

DOI: 10.1016/j.frl.2025.107388

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-06-17
Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006488