THE CURRENT SITUATION AND DEVELOPMENT PERSPECTIVES OF GREEN BANKING IN THE REPUBLIC OF SERBIA

Mirjana Jemović, Milena Nikolić, Milica Pavlović

DOI Number
https://doi.org/10.22190/TEME231127057J
First page
1013
Last page
1032

Abstract


Banks, as institutions with an exclusive license for deposit and credit operations, play a key role in financing the retail and corporate sector. Keeping in mind the problem of global warming, banks have adopted a proactive approach in order to contribute to the Paris Agreement goal. In addition to activities to improve their corporate eco-efficiency, banks confirm their environmental responsibility by introducing new banking products. Their role is especially evident in less developed countries and emerging markets. By applying the comparative and content analysis method, the paper analyses the green banking practice in the Republic of Serbia in order to assess the current situation and further development prospects. The analysis shows that only a few banks have high standards and an integrated approach to sustainability, which, among other things, includes clearly defined environmental and ethical requirements, as well as an adequate environmental risk assessment. The improvement of the environmental responsibility of banks in the coming period depends on a regulatory framework that will stimulate this banking practice, as well as on the bank employees and clients’ awareness about the importance of green banking and its advantages.


Keywords

green banking, green banking products, sustainability, ESG goals, Republic of Serbia.

Full Text:

PDF

References


Addiko Bank. (2023). ESG Strategy, Retrieved from: https://www.addiko.com/static/uploads/2023_Addiko-Group-ESG-Strategy-en-1.pdf, Accessed on: 10 October 2023.

AIK. (2023). Business Report. Retrieved from: https://aikbanka.rs/api/media/AIK%20BANKA_Izvestaj-revizora-i-Finansijski-izvestaji_2022.pdf, Accessed on: 10 October 2023.

ALTA banka. (2023). Social Responsibility, Retrieved from: https://altabanka.rs/o-alta-banci/drustvena-odgovornost/#, Accessed on: 10 October 2023.

Banca Intesa. (2023). Sustainability, Retrieved from: https://www.bancaintesa.rs/en/stanovnistvo/odrzivost.html, Accessed on: 10 October 2023.

Bank of China Srbija. (2023). Corporate Social Responsibility, Retrieved from: https://www.bankofchina.com/rs/en/aboutus/ab4/, Accessed on: 10 October 2023.

Banka Poštanska Štedionica. (2023). Social Responsibility, Retrieved from: https://www.posted.co.rs/o-nama/drustvena-odgovornost.html, Accessed on: 10 October 2023.

Behrens, A. (2021). Scaling-Up Green Finance for the Private Sector in Serbia in the Post-Pandemic World. Retrieved from: https://www.undp.org/sites/g/files/zskgke326/files/migration/rs/Scaling-Up-Green-Finance-for-the-Private-Sector-in-Serbia-in-the-Post-Pandemic-World.pdf, Accessed on: 10 October 2023.

Berrou, R., Dessertine, P., & Migliorelli, M. (2019). An Overview of Green Finance. In: Migliorelli, M. & Dessertine, P. (Eds.), The Rise of Green Finance in Europe: Opportunities and Challenges for Issuers, Investors and Marketplaces (pp.3-30). London: Palgrave Macmillan. https://doi.org/10.1007/978-3-030-22510-0_1

Bošković, N., Despotović, D., & Ristić, L. (2019). Održivi razvoj energetike u Republici Srbiji [Sustainable Development of Energy Sector in the Republic of Serbia], TEME, 43(3), 661-679. https://doi.org/10.22190/TEME190403041B.

Cunha, F., Meira, E., & Orsato, R. (2021). Sustainable Finance and Investment: Review and Research Agenda. Business Strategy and the Environment, 1-18, https://doi.org/10.1002/bse.2842.

Dikau, S. & Volz, U. (2019). Central Banking, Climate Change, and Green Finance. In: Sachs, J.D., Woo, W.T., Yoshino, N. & Taghizadeh-Hesary, F. (Eds.), Handbook of Green Finance - Energy Security and Sustainable Development (pp.81-102). Tokyo: Asian Development Bank Institute.

Du, G. (2023). Nexus Between Green Finance, Renewable Energy, and Carbon Intensity in Selected Asian Countries. Journal of Cleaner Production, 405, 136822. https://doi.org/10.1016/j.jclepro.2023.136822.

Erste Bank. (2023). Corporate Social Responsibility, Retrieved from: https://www.erstebank.rs/en/about-us/corporate-social-responsibility, Accessed on: 10 October 2023.

Eurobank Direktna. (2023). Corporate Responsibility, Retrieved from: https://www.eurobank-direktna.rs/home/corporate-responsibility.698.html, Accessed on: 10 October 2023.

Government of the Republic of Serbia. (2008). National Sustainable Development Strategy. Retrieved from: http://indicator.sepa.gov.rs/slike/pdf/o-indikatorima/nacionalna-strategija-odrzivog-razvoja-srbije, Accessed on: 10 September 2023.

Halkbank. (2023). Sustainability, Retrieved from: https://www.halkbank.com.tr/en/investor-relations/corporate-governance/sustainability.html, Accessed on: 10 October 2023.

Hu, Y., & Zheng, J. (2021). Is Green Credit a Good Tool to Achieve “Double Carbon” Goal? Based on Coupling Coordination Model and PVAR Model. Sustainability, 13(24), 14074. https://doi.org/10.3390/su132414074.

IFF. (2021). Global Finance and Development Report 2021. International Finance Forum. Retrieved from: http://iff.org.cn/uploads/2021GAM/GFAD-report20211206.pdf., Accessed on: 10 September 2023.

Jemović, M., & Radojičić, J. (2021). Sustainable Finance and Banking: A Challenge for Regulators and a Risk Management System. Facta Universitatis Series: Economics and Organization, 18(4), 341-356. https://doi.org/10.22190/FUEO210609024J.

Khairunnessa, F., Vazquez-Brust, D., & Yakovleva, N. (2021). A Review of the Recent Developments of Green Banking in Bangladesh. Sustainability, 13, 1904. https://doi.org/10.3390/su13041904.

Loan Market Association. (2018). Green Loan Principles.

Mir, A., & Bhat, A. (2022). Green Banking and Sustainability – A Review. Arab Gulf Journal of Scientific Research, 40(3), 247-263, https://doi.org/10.1108/AGJSR-04-2022-0017.

Mirza, N., Afzal, A., Umar, M., & Skare, M. (2023). The Impact of Green Lending on Banking Performance: Evidence from SME Credit Portfolios in the BRIC. Economic Analysis and Policy, 77, 843–850, https://doi.org/10.1016/j.eap.2022.12.024.

MOBI Bank. (2023). Business Report. Retrieved from: https://www.mobibanka.rs/static/file/Redovni_godisnji_finansijski_izvestaji_i_izvestaj_o_poslovanju_sa_misljenjem_revizije_za_2022_godinu.pdf, Accessed on: 10 October 2023.

NBS. (2021). On its 137th Birthday NBS Becomes Member of NGFS, Retrieved from: https://www.nbs.rs/en/scripts/showcontent/index.html?id=17130&konverzija=no, Accessed on: 10 October 2023.

NBS. (2022). Annual Financial Stability Report, Retrieved from: https://www.nbs.rs/export/sites/NBS_site/documents-eng/publikacije/fs/fsr_2022.pdf, Accessed on: 10 March 2024.

NBS. (2023a). Quarterly Review of Financial Stability Indicators for the Republic of Serbia,

Retrieved from: https://www.nbs.rs/export/sites/NBS_site/documents-eng/finansijska-stabilnost/pregled_grafikona_e.pdf/, Accessed on: 10 March 2024.

NBS. (2023b). Capital Buffer for a Systemically Important Bank, Retrieved from: https://www.nbs.rs/en/ciljevi-i-funkcije/finansijska-stabilnost/zastitni_slojevi_kapitala/sistemski-znacajne-banke/index.html, Accessed on: 10 October 2023.

Nikolić, M., & Milojković, D. (2023). The Role of Green Finance in the Management of Sustainable Development in Serbia. In: Book of Proceedings Sustainable Development as a Measure of Modern Business Success, Singidunum University International Scientific Conference FINIZ 2023 (pp. 50-55). Belgrade: Singidunum University. https://doi.org/10.15308/finiz-2023-50-55.

NLB Komercijalna banka. (2023). Corporate Responsibility, Retrieved from: https://www.nlbkb.rs/o-nama/odrzivo-poslovanje/korporativna-odgovornost, Accessed on: 10 October 2023.

Noh, H. J. (2018). Financial Strategy to Accelerate Green Growth. (ADBI Working Paper No. 866). Tokyo: Asian Development Bank Institute.

Numan, U., Ma, B., Sadiq, M., Bedru, H. D., & Jiang, C. (2023). The Role of Green Finance in Mitigating Environmental Degradation: Empirical Evidence and Policy Implications from Complex Economies. Journal of Cleaner Production, 400, 136693. https://doi.org/10.1016/j.jclepro.2023.136693.

OTP banka Srbija. (2023). Sustainable Business, Retrieved from: https://www.otpbanka.rs/odrzivo-poslovanje/, Accessed on: 10 October 2023.

ProCredit Bank. (2023). Environmental Approach, Retrieved from: https://www.procreditbank.rs/en/about-us/environmental-approach, Accessed on: 10 October 2023.

Punzi, M. (2019). Role of Bank Lending in Financing Green Projects. In: Sachs, J.D., Woo, W.T., Yoshino, N. & Taghizadeh-Hesary, F. (Eds.), Handbook of Green Finance - Energy Security and Sustainable Development (pp.237-259). Tokyo: Asian Development Bank Institute.

Raiffeisen Bank. (2022). Business According to ESG Principles, Retrieved from: https://www.raiffeisenbank.rs/esg/, Accessed on: 10 October 2023.

Responsible Business Forum Serbia. (2023). Members, Retrieved from: https://odgovornoposlovanje.rs/clanice, Accessed on: 10 October 2023.

Sovilj, R. (2020). The Concept of Sustainable Development in Modern Banking – Green Banking. In: Jovanović, P. & Zlatanović Stojković, S. (Eds.), Izazovi održivog razvoja u Srbiji i Evropskoj uniji [Challenges of Sustainable Development in Serbia and the European Union] (pp. 265-281). Belgrade: Instute of Social Sciences.

Srpska banka. (2023). Corporate Social Responsibility, Retrieved from: https://www.srpskabanka.rs/en/about-us/corporate-social-responsibility.html, Accessed on: 10 October 2023.

Stakić, N., & Barjaktarović, L. (2023). Sustainable Banking and its Main Determinants - Evidence from the Serbian Banking Sector. TEME, 47(2), 299-316. https://doi.org/10.22190/TEME220721020S.

UN Global Compact Network Serbia. (2023). Members, Retrieved from: http://www.ungc.rs/srb/clanovi, Accessed on: 10 October 2023.

UNEP FI. (2023). UNEP Finance Initiative. Available online: https://www.unepfi.org/about/ Accessed on: 19 October 2023.

UniCredit Bank. (2023). Sustainability, Retrieved from: https://www.unicreditbank.rs/en/o-nama.html#Sustainability, Accessed on: 10 October 2023.

United Nations. (1987). Report of the World Commission on Environment and Development: Our Common Future. United Nations, World Commission on Environment and Development. Retrieved from: https://digitallibrary.un.org/record/139811, Accessed on: 4 September 2023.

Yip, A. W. H., & Bochen, N. M. P. (2018). Sustainable Business Model Archetypes for the Banking Industry. Journal of Cleaner Production, 174, 150-169.

Zhang, X., Wang, Z., Zhong, X., Yang, S., & Siddik, A. B. (2022). Do Green Banking Activities Improve the Banks` Environmental Performance? The Mediating Effect of Green Financing. Sustainability, 14(2), 989. https://doi.org/10.3390/su14020989.

Zheng, S., Zhang, X., & Wang, H. (2023). Green Credit Policy and the Stock Price Synchronicity of Heavily Polluting Enterprises. Economic Analysis and Policy, 77, 251-264, https://doi.org/10.1016/j.eap.2022.11.011.

Zhou, X., Tang, X., & Zhang, R. (2020). Impact of Green Finance on Economic Development and Environmental Quality: A Study Based on Provincial Panel Data from China. Environmental Science and Pollution Research, 27(16), 19915-19932, https://doi.org/10.1007/s11356-020-08383-2.

bank. (2023). Sustainable Development Goals, Retrieved from: https://en.3bank.rs/sustainable-development-goals-sdg/, Accessed on: 10 October 2023.




DOI: https://doi.org/10.22190/TEME231127057J

Refbacks

  • There are currently no refbacks.


© University of Niš, Serbia
Creative Commons licence CC BY-NC-ND
Print ISSN: 0353-7919
Online ISSN: 1820-7804