Global Bank Lending Under Climate Policy
Asli Demirguc-Kunt,
Alvaro Pedraza (),
Fredy Pulga () and
Claudia Ruiz-Ortega ()
Additional contact information
Alvaro Pedraza: World Bank
Fredy Pulga: Universidad de la Sabana
Claudia Ruiz-Ortega: World Bank
IMF Economic Review, 2024, vol. 72, issue 2, No 8, 858-901
Abstract:
Abstract What is the response of bank foreign subsidiaries to climate policy in their host countries? This paper finds that global banks with high environmental performance increase their presence in countries after local authorities strengthen their climate-related actions. Through their foreign subsidiaries, these banks expand their credit by up to 5.2 percent following an increase in the one standard deviation in the host country’s climate policy index. Importantly, the paper does not find evidence that banks with low environmental scores exit in response to climate initiatives. The findings show that strengthening climate policy may also have other benefits—in addition to addressing carbon emission reduction, climate-related initiatives also appear to attract foreign capital from lenders with strong preferences for green assets.
JEL-codes: D62 G21 G28 Q54 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://link.springer.com/10.1057/s41308-023-00217-8 Abstract (text/html)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Global Bank Lending under Climate Policy (2023)
Working Paper: Global Bank Lending under Climate Policy (2022)
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:pal:imfecr:v:72:y:2024:i:2:d:10.1057_s41308-023-00217-8
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2
DOI: 10.1057/s41308-023-00217-8
Access Statistics for this article
More articles in IMF Economic Review from Palgrave Macmillan, International Monetary Fund
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().