“Glossy green” banks: the disconnect between environmental disclosures and lending activities

ECB economists Mariassunta Giannetti, Martina Jasova, Maria Loumioti and Caterina Mendicino in this paper point to glossy green banks: Using confidential information on banks’ portfolios, inaccessible to market participants, we show that banks that emphasize the environment in their disclosures extend a higher volume of credit to brown borrowers, without charging higher interest rates or […]