Green Finance

Banks have a wider and more critical role to play in economic development and environmentally sustainable outcomes. Guided by the requirements of customers and policy settings, banks must allocate resources to projects and activities that are environmentally sustainable in preference to those that aren't. Banks need to understand the sustainability of the economy and the different opportunities and risks they are taking in the short and the long term. In recent years, regulatory settings have provided very little incentives or disincentives to encourage banks to finance projects that are environmentally friendly. More recently, some countries like China have introduced a number of measures to increase green finance and sustainable outcomes, through more explicit policy settings and capital requirements. These measures should increase transparency and the management of environmental risks in the financial system and should ultimately change the way we do business to a more sustainable norm. In this book, the author aims to demystify the concepts of green finance and bank sustainability, providing readers with a comprehensive.