Some Don't Like it Hot: Bank Depositors and NGO Campaigns Against Brown Banks

Clément Mazet-Sonilhac and Jean-Stéphane Mésonnier
Authors registered in the RePEc Author Service: Jean-Stéphane Mésonnier

Working papers from Banque de France

Abstract: We exploit new data on NGO campaigns that target banks financing fossil fuels (``brown'' banks) to build a measure of French banks' environmental reputation, which we merge with granular data on bank deposits and loans of households in France over 2010-2020. We find that banks receive relatively fewer household deposits when they are perceived as browner. Depositors mostly react to their bank's brown reputation after the implementation of a new regulation that cuts down the transaction costs of changing banks. Last, using a large database of new mortgage loans, we show that browner banks also face a relatively lower demand for housing loans, implying lower mortgage loan rates offered to their customers.

Keywords: Climate change; Households Finance; Brown banks; Green Preferences (search for similar items in EconPapers)
JEL-codes: G21 G51 Q54 (search for similar items in EconPapers)
Pages: 72 pages
Date: 2024
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https://www.banque-france.fr/system/files/2024-10/WP968.pdf

Related works:
Working Paper: Some Don't Like It Hot: Bank Depositors and NGO Campaigns Against Brown Banks (2024)
Working Paper: Some Don't Like It Hot: Bank Depositors and NGO Campaigns Against Brown Banks (2024)
Working Paper: Some Don't Like It Hot: Bank Depositors and NGO Campaigns Against Brown Banks (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:968

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