Role of the State in the Resolution of Green Finance Development Issues

Fedorova, Elena P.

doi:10.31107/2075-1990-2020-4-37-51

Cited by 12 publications

(8 citation statements)

References 3 publications

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“…There are issues with green finance in almost all of the countries around the world, and these are particularly severe in developing nations whose economic growth relies on the development of oil and natural gas [12]. More recently, Fedorova [12] studied the problems related to the development of green finance in Russia.…”

Section: Introductionmentioning

confidence: 99%

Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs)

et al. 2021

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Green finance (GF) has been gaining significant attention in recent literature, owing to the rise in global actions against the climate change. It is conceptually ambiguous, with no conclusive agreement among researchers on its meaning. Therefore, the main purpose of the study is to identify the bankers’ perception of various dimensions of GF, and identify the major challenges affecting its implementation in Bangladesh. Besides, this study also reveals the status of GF in Bangladesh’s banks and non-bank financial institutions from 2014 to 2019. In order to define the key aspects of GF through the data obtained from 296 banking staffs of private commercial banks (PCBs) in Bangladesh, confirmatory factor analysis (CFA) was used. The study also used descriptive statistics to identify the major challenges hindering the development of GF in Bangladesh. The findings of this study show that, in comparison with other banks and non-bank financial institutions, the PCBs are the largest contributors to direct GF, accounting for 74.2% of the total GF in Bangladesh. The outcomes of the study also identify the “economic dimension” as the most significant dimension affecting the level of bankers’ perceptions of GF. Moreover, the bankers perceived the “social and environmental dimensions” as being the second and third most crucial factors influencing GF, followed by sources of green financing. The empirical findings indicate that bankers of PCBs deemed the level of awareness, beliefs and understanding of the major dimensions of GF and sources of green financing to be satisfactory for the implementation of GF in Bangladesh. In addition, the study also shows that high transaction costs, heavy default culture, operational self-insufficiency, improper appraisal of loan applications, and the absence of adequate accountability and transparency are the major barriers to the development of GF in Bangladesh. Therefore, major policy implications are further discussed.

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Section: Introductionmentioning

confidence: 99%

Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs)

et al. 2021

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“…Numerous studies have been recently conducted in the field of GF worldwide [1,3,12,16,[21][22][23][24][25][26][27][28][29][30][31][32], and these studies are mostly centered on GF for sustainable economic development [23][24][25]31,32]; the impact of GF on Fintech [26]; GF trends and opportunities [3,16,22,28]; the environmental effect of GF reform and innovations [17,29]; GF development and sustainability [1,27,33,34]; GF standards and green bonds [21,30]; and GF and sustainable development [12,[35][36][37]. Besides this, a few studies have tried to identify the relationship between GF and the green economy [7,38]; GF, carbon intensity, and non-fossil energy consumption, as well as climate change mitigation in the context of N11, BRICS countries, and China [39,40]; and sustainability performance [19,41].…”

Section: Introductionmentioning

confidence: 99%

Factors Affecting the Sustainability Performance of Financial Institutions in Bangladesh: The Role of Green Finance

et al. 2021

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Despite the increasing popularity of green finance and sustainable investment in the field of Sustainable Development Goals (SDGs), very few studies have investigated the effect of green finance dimensions on the sustainable performance of banks. Therefore, this study attempts to examine the dimensions of green finance and their effects on the sustainability performance of financial institutions in developing economies such as Bangladesh. The study also depicts the level of green financing adoption among the banks and non-bank financial institutions in the country between 2015 and 2020. Considering the nature of the dataset, the structural equation modeling technique was employed in this study to fulfil the research objectives. Amongst banks and non-bank financial institutions, the study highlighted private commercial banks as being the highest contributor to green financing, accounting for 78.12% of the total green financing in Bangladesh. In addition, the empirical findings revealed that the dimensions of green finance are related to the economic, social, and environmental aspects of the SDGs. Furthermore, empirical findings indicated that the dimensions of green finance—social, economic, and environmental—have a strong positive effect on the sustainability performance of banks. The study also discovered that approximately 95% of bankers identify green financing as an essential element in the short- and long-term development of banking strategies in Bangladesh. Consequently, this study adds to the body of knowledge on green finance development and the sustainability performance of banks and financial institutions in emerging economies such as Bangladesh. Therefore, major managerial policy implications are discussed.

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“…The year 2016 is known for the birth of green finance, and the introduction of the GFPZ policy is conducive to promoting the green technology innovation capacity of enterprises. Government can motivate the development of green manufacturing businesses in the form of loan guarantees and interest subsidies [ 24 ]. As an important green financial policy, the GFPZ policy can strongly promote the green investment of enterprises.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

Green Financial Reform and Corporate ESG Performance in China: Empirical Evidence from the Green Financial Reform and Innovation Pilot Zone

Zhao

et al. 2022

IJERPH

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Does the establishment of pilot zones for green finance reform and innovations in 2017 have an impact on the Environment, Social and Governance (ESG) scores of enterprises? This paper selects data from Chinese A-share listed companies from 2014–2020 and uses the differences-in-differences (DID) model to analyze the impact of green financial reform on the ESG scores of enterprises. The study shows that the establishment of the Green Financial Reform and Innovation Pilot Zone (GFPZ) policy helps enterprises to obtain higher ESG scores through environmental, social and governance mechanisms. When ESG is measured using environmental, social and governance data, our results suggest that the contribution of green finance reforms to ESG scores is primarily driven by social responsibility scores. The adjustment effect analysis shows that for large enterprises in the GFPZ, the above effects have stronger influence, but there is no significant difference between heavily polluting and non-heavily polluting firms in the GFPZ. Expansive analysis shows that the improvement in ESG scores of enterprises in the GFPZ not only contributes to the green performance of enterprises, but also to their financial performance.

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Role of the State in the Resolution of Green Finance Development Issues

Cited by 12 publications

References 3 publications

Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs)

Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs)

Factors Affecting the Sustainability Performance of Financial Institutions in Bangladesh: The Role of Green Finance

Green Financial Reform and Corporate ESG Performance in China: Empirical Evidence from the Green Financial Reform and Innovation Pilot Zone

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