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Green light for green credit? Evidence from its impact on bank efficiency
Galán, J.E. Tan, Yong
Galán, J.E.
Tan, Yong
Publication Date
2024-01
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© 2022 The Authors. International Journal of Finance & Economics published by John Wiley & Sons Ltd.
This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
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Yes
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openAccess
Accepted for publication
18/08/2022
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Abstract
We assess, for the first time in the literature, the impact of green credit on bank efficiency. We find that green credit has a negative impact on bank efficiency. However, the effect is heterogeneous among different types of banks. While small and low capitalized banks are more affected, the impact is lower in banks with higher levels of risk. On the other hand, we find that highly capitalized banks can offset the negative effects of green credit, while large banks and those highly involved in green credit, benefit from this activity.
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Citation
Galán JE and Tan Y (2024) Green light for green credit? Evidence from its impact on bank efficiency. International Journal of Finance and Economics. 29(1): 531-550.
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Article