Does ESG performance impact credit portfolios? Evidence from lending to mineral resource firms in emerging markets

Rahat, Birjees; Nguyen, Pascal

doi:10.1016/j.resourpol.2023.104052

Cited by 16 publications

(4 citation statements)

References 53 publications

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“…This is different from Indonesia, where out of eight banks as first movers in sustainable finance, three state-owned banks are dominant in lending to sustainable business activities [58]. Like economic performance, the credit portfolio also has a relationship with ESG performance, namely the ESG score [59]. This is in line with the research of Huy and Loan [60], which shows that risk management has a positive impact on green credit.…”

Section: Hypotheses Development 221 the Relationship Between Value Ch...mentioning

confidence: 51%

“…VC has the largest positive effect on SP, followed by EP and SL, which means that the better the VC, the better the SP, EP, and SL. The research results of Rahat and Nguyen [59] confirm previous findings that show that value chain supporting activities in the form of credit portfolios, human resources, information technology, risk management, and financial capacity influence ESG performance [60]. Likewise, the influence of value chain supporting activities on economic performance is in line with the research results of Jiang et al [38], where a higher capital ratio has a positive effect on credit growth and profitability and credit risk management has a positive effect on company value [77].…”

Section: The Influence Of Value Chain Economic Performance and Esg Pe...mentioning

confidence: 98%

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Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia

Manurung,

Siregar,

Fahmi

et al. 2024

Sustainability

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Banks have enormous potential to support the achievement of sustainable development goals (SDGs) in accordance with their function as financial intermediaries through sustainable lending. However, the average national financing growth for the sustainable business activity category over the past four years is still 12%. The aim of this research is to identify the conditions of sustainable lending at state-owned conventional banks and analyze the influence of the value chain, economic performance, and ESG performance on sustainable lending. The research was conducted at state-owned commercial banks in Indonesia. The research utilized structural equation modeling (SEM). The SEM results of this study describe value chain, ESG performance (environmental, social, and governance), and economic performance and have direct and positive influences on sustainable lending, of which ESG performance has the biggest influence. As per each individual aspect, social orientation makes the biggest contribution toward sustainable lending.

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Section: Hypotheses Development 221 the Relationship Between Value Ch...mentioning

confidence: 51%

Section: The Influence Of Value Chain Economic Performance and Esg Pe...mentioning

confidence: 98%

Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia

Manurung,

Siregar,

Fahmi

et al. 2024

Sustainability

View full text Add to dashboard Cite

show abstract

“…This is different from Indonesia where out of eight banks as first movers in sustainable finance, three state-owned banks are dominant in lending to sustainable business activities [56]. Like economic performance, the credit portfolio also has a relationship with ESG performance, namely the ESG score [57]. This is in line with the research of Huy and Loan [58] which shows risk management has a positive impact on green credit.…”

Section: The Relationship Between Value Chain and Economic Performancementioning

confidence: 61%

“…VC has the largest positive effect on SP, followed by EP and SL, which means that the better the VC, the better the SP, EP and SL. The research results of Rahat and Nguyen [57] confirm previous findings which show that value chain supporting activities in the form of credit portfolios, and human resources, information technology, risk management and financial capacity influence ESG performance [58]. Likewise, the influence of value chain supporting activities on economic performance is in line with the research results of Jiang et al [37] where a higher capital ratio has a positive effect on credit growth and profitability, credit risk management has a positive effect on company value [75].…”

Section: The Influence Of Value Chain Economic Performance and Esg Pe...mentioning

confidence: 98%

Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia

Manurung,

Siregar,

Fahmi

et al. 2024

Preprint

View full text Add to dashboard Cite

Banks have enormous potential in supporting the achievement of sustainable development goals (SDGs) in accordance with their function as financial intermediaries through sustainable lending. However, the average national financing growth for the sustainable business activity category over the past four years is still 12%. The aim of this research is to identify the conditions of sustainable lending at state-owned conventional banks and analyze the influence of the value chain, economic performance and ESG performance on sustainable lending. The research was conducted at state-owned commercial banks in Indonesia. The research utilized a Structural Equation Modeling (SEM). The SEM results of this study describe value chain, ESG performance (environmental, social and governance) and economic performance have direct and positive influences on sustainable lending, of which ESG performance has the biggest influence. As per individual aspect, social orientation gives the biggest contribution toward sustainable lending.

show abstract

Sustainability in small and medium sized enterprises (SME) financing

Hakam,

Hakam

2024

Development and Sustainability in Economics and Finance

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Does ESG performance impact credit portfolios? Evidence from lending to mineral resource firms in emerging markets

Cited by 16 publications

References 53 publications

Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia

Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia

Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia

Sustainability in small and medium sized enterprises (SME) financing

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