Research by: Felipe O. Calderon
Abstract
This is an exploratory study which investigates the governance mechanisms created by banks to support the implementation of sustainable lending. A content analysis of the websites of the 62 members of the Global Banking Alliance on Values reveals that evidence-based disclosures demonstrate the commitment of some banks to govern their sustainable lending activities. The publication of the list of loan borrowers emerged as a governance-by-disclosure mechanism in the implementation of sustainable lending. The publication of loan borrowers has contributed to the improvement of information asymmetry in the banking industry. It was also demonstrated how shared values among stakeholders could contribute to the development of effective governance mechanisms. Based on the content analyses, the study concludes with two recommendations. First, the banking industry should consider the publication of loan borrowers to promote discipline within the banking sector. Second, the published information provides evidence to the promotion of sustainability practices.
To cite this article: Calderon, F. (2020). Governance mechanisms for sustainable lending: An exploratory study of existing practices. Journal of Sustainable Finance & Investment. https://doi.org/10.1080/20430795.2020.1842101.
To access this article: https://doi.org/10.1080/20430795.2020.1842101
About the Journal
The Journal of Sustainable Finance & Investment is a quarterly journal publishing peer-reviewed articles on radical and reformist initiatives for social responsiveness in global financial markets. The Journal specifically focuses on environmental, developmental, social, and governance principles as formulated in the financial markets, managed investment, banking, micro-finance, project finance and philanthropy.
The journal develops the understanding of sustainable investment theory and practice by providing a venue for in-depth discussion and offering a range of accessible, impartial perspectives for researchers and professionals.
SJR: 13 | ABS: 1
