{"title":"Sustainable lending strategies: a framework for enhancing climate resilience in industrial loan portfolios","authors":"Neha Chhabra Roy","doi":"10.1007/s10308-024-00709-w","DOIUrl":null,"url":null,"abstract":"<div><p>This paper underscores the critical significance of climate-related risks within the banking and industrial sectors, emphasizing the need for a climate-resilient response system and strategic loan portfolio planning. The study introduces an efficient methodology for identifying key Climate-Linked Risks (CLRs) across impacted sectors, capturing their diverse impacts, quantifying them, and subsequently designing optimal loan portfolios. A comprehensive review of literature and primary responses from CLR experts, coupled with secondary data sources, forms the basis of our analysis. Initially, CLR impacts were categorized into push and pull indicators based on empirical weighted averages. Subsequently, fuzzy logic theory was employed to quantify CLR in form of composite index across industries. Finally, the study proposes portfolio planning for banks using mean variance portfolio. The proposed control approach assesses sectoral severity, prioritizes sectors, identifies root causes, and recommends cost-effective strategies, enhancing the overall resilience of the banking ecosystem.</p></div>","PeriodicalId":45680,"journal":{"name":"Asia Europe Journal","volume":"22 4","pages":"423 - 462"},"PeriodicalIF":1.6000,"publicationDate":"2024-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asia Europe Journal","FirstCategoryId":"90","ListUrlMain":"https://link.springer.com/article/10.1007/s10308-024-00709-w","RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"INTERNATIONAL RELATIONS","Score":null,"Total":0}
引用次数: 0
Abstract
This paper underscores the critical significance of climate-related risks within the banking and industrial sectors, emphasizing the need for a climate-resilient response system and strategic loan portfolio planning. The study introduces an efficient methodology for identifying key Climate-Linked Risks (CLRs) across impacted sectors, capturing their diverse impacts, quantifying them, and subsequently designing optimal loan portfolios. A comprehensive review of literature and primary responses from CLR experts, coupled with secondary data sources, forms the basis of our analysis. Initially, CLR impacts were categorized into push and pull indicators based on empirical weighted averages. Subsequently, fuzzy logic theory was employed to quantify CLR in form of composite index across industries. Finally, the study proposes portfolio planning for banks using mean variance portfolio. The proposed control approach assesses sectoral severity, prioritizes sectors, identifies root causes, and recommends cost-effective strategies, enhancing the overall resilience of the banking ecosystem.
期刊介绍：
The Asia-Europe Journal is a quarterly journal dedicated to publishing quality academic papers and policy discussions on common challenges facing Asia and Europe that help to shape narratives on the common futures - including both risks and opportunities - of Asia and Europe. The Journal welcomes academically and intellectually rigorous research papers as well as topical policy briefs and thought pieces on issues of bi-regional interest, including management and political economy, innovation, security studies, regional and global governance, as well as on relevant socio-cultural developments and historical events. Officially cited as: Asia Eur J
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