A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Borrowing-Firm Emission Trading, Bank Rate-Setting Behavior, and Carbon-Linked Lending under Capital Regulation
The article develops a capped barrier option model to evaluate a bank’s equity. We explore the effects of borrowing-firm carbon emission trading on bank carbon-linked lending, explicitly considering borrowing-firm credit risks under capital regulation. We also integrate the regulatory compensation for bank low-carbon lending with borrowing-firm carbon allowance transactions in the emission trade scheme. Results show that an increase in the regulatory low-emitter lending compensation decreases loans at an increased interest margin, contributing to bank profitability and stability. The stringent regulatory cap for carbon emission allowances hurts profitability and stability. Strict capital regulation would jeopardize bank performance.
Borrowing-Firm Emission Trading, Bank Rate-Setting Behavior, and Carbon-Linked Lending under Capital Regulation
The article develops a capped barrier option model to evaluate a bank’s equity. We explore the effects of borrowing-firm carbon emission trading on bank carbon-linked lending, explicitly considering borrowing-firm credit risks under capital regulation. We also integrate the regulatory compensation for bank low-carbon lending with borrowing-firm carbon allowance transactions in the emission trade scheme. Results show that an increase in the regulatory low-emitter lending compensation decreases loans at an increased interest margin, contributing to bank profitability and stability. The stringent regulatory cap for carbon emission allowances hurts profitability and stability. Strict capital regulation would jeopardize bank performance.
Borrowing-Firm Emission Trading, Bank Rate-Setting Behavior, and Carbon-Linked Lending under Capital Regulation
Shi Chen (author) / Fu-Wei Huang (author) / Jyh-Horng Lin (author)
2022
Article (Journal)
Electronic Resource
Unknown
Metadata by DOAJ is licensed under CC BY-SA 1.0
World Bank environment lending tops $11,600m
Online Contents | 1997
The Influence of Social Capital on Farm Household’s Borrowing Behavior in Rural China
| DOAJ | 2018
Community Lending, Bank Efficiency, and Economic Dualism
| Online Contents | 1998