Climate change and the European banking sector: the effect of green technology adaptation and human capital

IF 3.6 Q1 BUSINESS, FINANCE
Ayesha Afzal, Jamila Abaidi Hasnaoui, Saba Firdousi, Ramsha Noor
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引用次数: 0

Abstract

Purpose

Climate change poses effect on banking sector’s risks and profitability through adaptation of green technology. This study aims to incorporates green technology adaptation in three sectors: green banking, green entrepreneurial innovation (EI) and green human resource (HR), in a model of bank’s performance. And determines the impact of climate change on bank risk and profitability.

Design/methodology/approach

An assessment of profitability and risk profile of commercial banks is done for 27 European countries for 2013–2022, employing a two-step difference system-generalized method of moments estimation technique with a moderate effect of climate change by including interaction between climate change and green technology adaptation.

Findings

The results indicate that green banking increases profitability, reduces credit risk and increases liquidity risk. The results also show that green human resource increases profitability and becomes a source of credit and liquidity risks for the banks. Green EI increases credit risk and liquidity risk, while the effects of green EI on profitability vary with the use of two proxies: Green patents increase profitability and environment, social and corporate governance (ESG) scores decrease profitability.

Practical implications

Supportive government initiatives, including subsidies and tax rebates to green borrowers, may take the burden of green transition off the banking sector.

Originality/value

This paper observes the impact of green technology adaptation in three sectors: banks, EI and HR, moderated by climate change, adding substantially to the existing literature in conceptual framework and methodology.

气候变化与欧洲银行业:绿色技术适应和人力资本的影响
目的气候变化通过适应绿色技术对银行业的风险和盈利能力产生影响。本研究旨在将绿色银行、绿色创业创新(EI)和绿色人力资源(HR)三个领域的绿色技术适应纳入银行绩效模型,并确定气候变化对银行风险和盈利能力的影响。设计/方法/途径采用两步差分系统-广义矩量法估算技术,对 27 个欧洲国家 2013-2022 年商业银行的盈利能力和风险状况进行了评估。结果还表明,绿色人力资源增加了银行的盈利能力,并成为信贷风险和流动性风险的来源。绿色环境投资增加了信贷风险和流动性风险,而绿色环境投资对盈利能力的影响因使用两个替代变量而不同:实践意义政府的支持性举措,包括对绿色借款人的补贴和退税,可能会减轻银行业绿色转型的负担。 原创性/价值本文观察了绿色技术适应性对银行、环境投资和人力资源三个部门的影响,并对气候变化进行了调节,在概念框架和方法论上对现有文献进行了实质性补充。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
4.30
自引率
0.00%
发文量
18
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