The Role of the Central Bank in Green Financing through the Banking Sector in Romania
The Role of the Central Bank in Green Financing through the Banking Sector in Romania

Author(s): Valentin Mihai Leoveanu
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Sustainability; Green financing; Central bank; Climate change; Financial intermediation
Summary/Abstract: Considering the challenges brought by global climate change, the article intends to underline the role of the National Bank of Romania in green financing through the banking sector in Romania, by stimulating the application of good practices in this field and by increasing the interest of banks in applying specific methods to benefit by the opportunities of the climate change European agenda. The research methodology involved the qualitative analysis of the instruments used by the Central Bank in monitoring climate risks in Romania and examining Romanian companies’ capacity to face unfavorable developments regarding climate change with impact on bank lending. A comparative analysis is also undertaken considering three top banks in Romania concerning their commitment to promoting sustainability and green financing in banking. The research results highlight the effectiveness and breadth of the methods and work tools used by banks to support the efforts undertaken at the European level to limit the negative effects produced by climate change.

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