Abstract
Banks’ active involvement in sustainable growth and their commitment to
steer the necessary financial resources to the green economy requires the
integration of finance into the macroeconomics of environmental shifts and
climate change. Banks’ intermediary role, and their capacity to create money
and decide on whether to allocate new credits to the economy provide banks
with the ability to reinforce companies’ commitment to integrate sustainability
indicators into their business strategies and therefore contribute to an orderly
transition towards a low-carbon economy. Accordingly, this study performs
a comprehensive literature analysis to identify, appraise and examine the
researchers’ perspectives on the substantive factors that may boost banks’
role in sustainable growth and their contribution to close the present green
finance gap, and therefore, reduce the uncertainty and endogenous risks that
may arise from climate and environmental shocks. A total of 60 publications
retrieved from the Scopus database and extending over the 2001- 2021
period were examined. In line with the study’s review protocol, the main
research themes in extant literature are banks’ determinants of sustainability
behaviour, banks’ sustainability performance-financial performance
association, customers and depositors’ responsiveness to banks’ sustainability
practices, sustainable banks’ risk profile, and the mandatory calibration of
“green” supervision, macroprudential regulations and monetary policies to
further enhance climate-resilient investments.
steer the necessary financial resources to the green economy requires the
integration of finance into the macroeconomics of environmental shifts and
climate change. Banks’ intermediary role, and their capacity to create money
and decide on whether to allocate new credits to the economy provide banks
with the ability to reinforce companies’ commitment to integrate sustainability
indicators into their business strategies and therefore contribute to an orderly
transition towards a low-carbon economy. Accordingly, this study performs
a comprehensive literature analysis to identify, appraise and examine the
researchers’ perspectives on the substantive factors that may boost banks’
role in sustainable growth and their contribution to close the present green
finance gap, and therefore, reduce the uncertainty and endogenous risks that
may arise from climate and environmental shocks. A total of 60 publications
retrieved from the Scopus database and extending over the 2001- 2021
period were examined. In line with the study’s review protocol, the main
research themes in extant literature are banks’ determinants of sustainability
behaviour, banks’ sustainability performance-financial performance
association, customers and depositors’ responsiveness to banks’ sustainability
practices, sustainable banks’ risk profile, and the mandatory calibration of
“green” supervision, macroprudential regulations and monetary policies to
further enhance climate-resilient investments.
| Original language | English |
|---|---|
| Journal | Journal of Wealth Management & Financial Planning |
| Publication status | Published - 26 May 2023 |