文章基本信息

标题：Why banks should consider ESG risk factors in bank lending?
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作者：Sarwar Uddin Ahmed ; Samiul Parvez Ahmed ; Ikramul Hasan 等
期刊名称：Banks and Bank Systems
印刷版ISSN：1816-7403
电子版ISSN：1991-7074
出版年度：2018
卷号：13
期号：3
页码：71-80
DOI：10.21511/bbs.13(3).2018.07
语种：English
出版社：LLC "CPC "Business Perspectives"
摘要：Why banks should be concerned about incorporating environmental,social and gov ernance (ESG) criteria in the lending process? What is the motivation? This study aims to find the motives for considering environmental,social and governance (ESG) criteria in bank lending process. A primary survey has been conducted to know the current status and motivation for incorporating ESG factors in investment decisions. Sample comprised 30 private commercial banks (PCBs) operating in Bangladesh. Data collected were analyzed with graphs,descriptive statistics,and regression analysis. Findings of the study indicate that banks are mostly considering basic environmental, social and governance factors set by regulators qualitatively. They are lagging behind in considering the advanced ESG criteria needed for sustainable and efficient credit risk management. Based on motivation for incorporating ESG factors,it was found that banks pioneering in incorporating ESG factors in lending decisions are compensated through better financial performance. Findings of the study are expected to encourage practitioners and policy-makers to take more pragmatic steps to incorporate ESG risk factors quantitatively in lending decision-making process.
关键词：ESG risk;private commercial banks;financial performance;Bangladesh