Banks’ Policies Related to Financing Entities’ Investments in Green Economy
Banks’ Policies Related to Financing Entities’ Investments in Green Economy

Summary/Abstract: An entity’s obligation to invest in environmental protection and preservation is often imposed by external regulation. However, the most impactful funding for investment in environmental protection and preservation is acquired through the financial markets, primarily through banks and green ecological funds. This is why banks’ impact on the environment should be measured by their approach to the assessment of the environmental risks associated with their financial products and services and fund-granting policies. This paper reviews the types and purposes of financing activities related to environmental protection undertaken by entrepreneurial and other entities, as well as the conditions under which these financial assets are granted. The especial attention is devoted to three topics: banks’ adherence to sustainability, the purpose of green loans, and sources of green financing.

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