Greening capital requirements

Yannis Dafermos, Frank van Lerven and Maria Nikolaidi

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Capital requirements play a central role in financial regulation and have significant implications for financial stability and credit allocation. However, in their existing form, they fail to capture environment-related financial risks and act as a barrier to the transition to an environmentally sustainable economy. This paper considers how capital requirements can become green and explores how green differentiated capital requirements (GDCRs) can be incorporated into financial regulation frameworks.

JEL-codes: F3 G3 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2022-10-07
New Economics Papers: this item is included in nep-ban, nep-cba, nep-ene, nep-env, nep-hme and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://eprints.lse.ac.uk/116946/ Open access version. (application/pdf)

Related works:
Working Paper: Greening capital requirements (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:116946

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