Sustainable Bank Lending at the Example of Triodos Bank Germany
The integration of sustainability into finance has become increasingly important and especially Socially Responsible Investment (SRI) has steadily rising volumes of assets under management. However, if the economy and the financial sector as a whole are regarded, focusing only on the investment side of corporate finance is not sufficient: In the Eurozone, 88.3% of debt capital consists of bank lending.
The thesis develops the Dimensions of Sustainable Bank Lending Model referring to four areas in which ethical aspects can be integrated into the credit business of banks, namely clients (selection of sustainable borrowers), products (specifically adapted banking products and services), bank internal operations (governance and management structures, loan process) and markets (transformation of financial markets towards more sustainability).
Among others, Triodos Bank N.V. operates as a sustainable bank. As a practical example, the bank and its business approaches of sustainability are assessed along the model.