Financial Stability and Sustainable Finance: A Mini-Review

2020 ◽  
Author(s):  
Ahmed Al Dhaheri ◽  
Haitham Nobanee
2020 ◽  
Vol 20 (4) ◽  
pp. 118-133
Author(s):  
Klaudia Zielińska-Lont

The article discusses the potential impact of sustainable finance initiatives on financial stability. A careful literature review on the subject of sustainable development and stability of the financial sector is performed in order to identify potential gaps in policies and regulations. Existing considerations around the impact of sustainable development efforts focus exclusively on the consequences of climate change for the portfolio of assets held by the financial sector, whereas the author examines the growing market for sustainable financial instruments as a potential threat. The results indicate that sustainability features of new financial instruments are not methodically evaluated in the context of their credibility and may therefore suffer from sudden loss of value that is not accounted for under the existing supervisory mechanisms. Inconsistent definitions and no single perception of sustainability further enhance the risk for investors and issuers and that risk needs to be accounted for under the mechanisms safeguarding financial stability.


2021 ◽  
Vol 10 (1) ◽  
pp. 111-127
Author(s):  
Pedro Ildemaro Alguindigue Ruiz ◽  
Olaf Weber

Sustainability risks represent a significant concern for the banking industry. Consequently, financial regulators created financial sector sustainability guidelines and regulations. However, the effect of these policies on banks’ financial stability is unclear. Hence, this study analyzes 149 banks in 17 countries in Latin America to explore the impact of financial sector sustainability guidelines and regulations on the banking industry. We use the Z-Score to measure the financial stability of banks in countries with and without financial sector sustainability guidelines and regulations. Based on panel regression, our results suggest significant differences between banks in countries with and without financial sector sustainability guidelines and regulations. We conclude that sustainable finance regulations promote financial stability as well as sustainable banking practices.


2021 ◽  
Vol 14 (5) ◽  
pp. 224-231
Author(s):  
M. V. Chkhan

Book review: Busch D., Ferrarini G., Grünewald S. 2021. Sustainable Finance in Europe. Corporate Governance, Financial Stability and Financial Markets. Springer. 511 p. DOI: 10.1007/978- 3-030-71834-3


2017 ◽  
Vol 1 (1) ◽  
pp. 1-24
Author(s):  
Pradina Anugrahaeni

AbstractGreen bonds, as a vehicle to mobilize additional investors in supporting sustainable finance, have been a longstanding topic of discussion. Moreover,  Green sukuk also have been developed in Islamic jurisdiction markets, mirroring the nature of green bonds in accommodating socially responsible investments. While earlier studies focused on the development of those new asset classes in the developed economies, this paper specifically examines the context of emerging countries, in particular Indonesia. Indonesia is on its way to issue the first green bonds and green sukuk; therefore, it is needed to assure that the initiatives will not disrupt the existing practices. This paper aims to look at the existing Indonesian conventional bond and sukuk markets, then analyse whether the preconditions are sufficient – from financial stability perspectives. Contrary to the Islamic researches, this paper will point out that sukuk practices may not be immune from instability. The paper argues that strong support by the government may serve as a stabilising effect on the policy agenda to launch green bonds and green sukuk in Indonesia. This paper, however, does not scrutiny sukuk structures per case, which may be useful to identify specific issues that may arise.


2012 ◽  
pp. 32-47
Author(s):  
S. Andryushin ◽  
V. Kuznetsova

The paper analyzes central banks macroprudencial policy and its instruments. The issues of their classification, option, design and adjustment are connected with financial stability of overall financial system and its specific institutions. The macroprudencial instruments effectiveness is evaluated from the two points: how they mitigate temporal and intersectoral systemic risk development (market, credit, and operational). The future macroprudentional policy studies directions are noted to identify the instruments, which can be used to limit the financial systemdevelopment procyclicality, mitigate the credit and financial cycles volatility.


2020 ◽  
pp. 66-92 ◽  
Author(s):  
A. E. Abramov ◽  
A. D. Radygin ◽  
M. I. Chernova ◽  
R. M. Entov

This article analyzes the key patterns of the dividend policy and the problem of the “dividend puzzle” in the general context of the development of the stock market in Russia. The article consists of two parts.In the first part we summarize main research trends of dividend policy in modern economic theory (the classical Modigliani—Miller theory of dividend irrelevance, agent and signal hypotheses, the smoothing model, the catering theory, etc.). We emphasize the theoretical analysis of motivation of the largest Russian companies for profit allocation and dividend payout, based on a sample of 236 joint stock companies. Since 2012, a steady increase in dividend payments has been revealed in both private and state-owned enterprises (SOEs). The bulk of dividend payments from SOEs accounts for only 12 major companies. Along with an increase in the market value, dividends have become an important factor in the total return on shares. Under current conditions, the probability of paying dividends depends not only on the size of the company and indicators of its’ financial stability, but also on the presence of the state in the capital of companies. However, the relationship between the probability of paying dividends and state participation in the ownership structure is not universal and can be explained by specific factors that go beyond the classical dividend theories.In the second part we will analyze the patterns of stock market performance and dividend policy of the largest Russian companies, motivation for dividend payouts and special aspects of SOEs policy.


Author(s):  
L.I. Lachkova ◽  
A.O. Borysova ◽  
V.M. Lachkova
Keyword(s):  

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