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What It Means and How It Is Approached by Financial Regulators
Fišer, Ondřej ; Sejkora, Tomáš (advisor) ; Kohajda, Michael (referee)
The thesis covers the topic of sustainable finance regarding its terminology, policy strategies and overall goals. In addition, it specifically deals with the way sustainable finance is perceived by central banks and other financial market regulators. The first chapter explains terms like "ESG investing," "positive finance," "socially responsible investment, "principles for responsible investing" "or "green finance" and points out the differences between them. The second chapter concerns with sustainable finance policy strategies adopted both by private businesses and public institutions. Mentioned are, among others, the types of ESG screening methods used by investors, the EU Green Taxonomy, the EU Shareholders' Rights Directive and its framework, the European Green New Deal or the concept of a sustainable fiduciary duty principle. It also touches on sustainable, green taxation in the shape of carbon taxes or emission trading schemes. The third chapter explores the objectives sustainable finance try to meet, specifically the ones having to do with climate change. The chapter entails a summary of the potential climate change scenarios as laid out by the Intergovernmental Panel on Climate Change. The fourth chapter deals with the role that central banks can play in sustainable finance as they gradually step...
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Regulation of green banking
Ivančová, Simona ; Teplý, Petr (advisor) ; Juhászová, Jana (referee)
This thesis provides an assessment of potential impacts of the regulation of green banking proposed by the European Commission. Two types of data and methodologies are used. The sample consisting of 28 green banks and 63 of its peers, observed from 2012 to 2018, is analysed via panel regression to es- timate the impact of green banking on profitability and volatility of banks. We use the Within-between estimation which allows the studied dummy vari- able Green to be estimated. Profitability is measured by Return on Assets and Return on Equity and to measure volatility we use their 7-year standard deviations. Aggregated data from the European Central Bank on European banks asset breakdown by instrument are used for the sensitivity analysis esti- mating the impact of the proposed regulation on the bank capital. Firstly, we did not find statistically significant impact of green banking practice on banks profitability. We found the green banks tend to demonstrate lower volatility in terms of Return on Equity. Secondly, we estimated that planned regulation of green banking practice will probably have negligible impact on the banks capital. However, it might decrease lending to carbon-intensive industries by commercial banks. Keywords brown penalty, green banking, green supporting factor, panel...
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