Empirical analysis of the integration of environmental risks into the credit risk management process of European banks
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Date
2008-03Type
- Journal Article
ETH Bibliography
yes
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Abstract
About 15 years ago, banks started to integrate environmental risks into their credit risk management procedures. In this article, a survey of the European banking sector focusing on the analysis of the integration of environmental risks into all phases of the credit risk management, rating, costing, pricing, monitoring and work-out, is presented. The integration of environmental risks into the whole credit risk management process is important because only then is an adequate risk management guaranteed. The results show that banks integrate environmental risks especially into the rating phase, but not in all phases of the credit management process, though this is recommendable because these risks influence all phases of the credit management process. Furthermore, significant differences in integrating environmental risks between banks that are signatories of the UNEP statement by banks on the environment and sustainable development and banks that had not signed this agreement so far could be found. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. Show more
Publication status
publishedExternal links
Journal / series
Business Strategy and the EnvironmentVolume
Pages / Article No.
Publisher
WileySubject
environmental risk; environmental performance; credit risk; integration; credit management phases; sustainability; banksOrganisational unit
03400 - Scholz, Roland W.
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ETH Bibliography
yes
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