Citation:
Weber, O. , Fenchel, M. , & Scholz, R. W. . (2008). Empirical analysis of the integration of environmental risks into the credit risk management process of European banks. Business Strategy and the EnvironmentBusiness Strategy and the Environment, 17, 149-159.
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.
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.
