Published June 6, 2026 | Version v1

INSTITUTIONAL FRAMEWORKS FOR DEVELOPING GREEN FINANCE IN THE BANKING SYSTEM

Description

This article examines the institutional frameworks necessary for the development of green finance within the banking system. The study analyzes macro-, meso-, and micro-level institutional mechanisms that support sustainable banking practices, including central bank regulations, green taxonomies, ESG integration, and environmental risk management. Particular attention is devoted to the role of international standards and regulatory frameworks in promoting environmentally sustainable financial activities. The article also discusses the major challenges associated with institutionalizing green finance, such as data asymmetry, maturity mismatch, and the shortage of qualified specialists. The findings indicate that the establishment of a comprehensive institutional framework is essential for ensuring financial stability and accelerating the transition toward a low-carbon economy.

Files

112-114.pdf

Files (218.3 kB)

Name Size Download all
md5:138974af6543b492ffd7bbf1299f4b82
218.3 kB Preview Download

Additional details

References

  • 1.An, J., Mikhaylov, A., & Richter, U. H. (2021). Trade-off between green energy generation and financial performance in the banking sector. Energies, 14(14), 4122. https://doi.org/10.3390/en14144122
  • 2.Berrou, R., Desson, E., Ninio, S., & Plihon, D. (2019). Corporate governance and green finance: The role of boards of directors. Journal of Sustainable Finance & Investment, 9(3), 201–218.
  • 3.European Commission. (2020). Technical guidance on the application of "do no significant harm" under the Recovery and Resilience Facility Regulation. European Union.
  • 4.Network for Greening the Financial System [NGFS]. (2021). Scenarios for climate risk analysis: Guide for central banks and supervisors. NGFS Publishing.
  • 5.Pradhan, A. K., & Sahoo, M. (2022). Institutional quality and green finance: Evidence from emerging economies. Environmental Science and Pollution Research, 29(28), 42531–42544. https://doi.org/10.1007/s11356-022-18894-3