Publication

This paper looks at the impact sustainability regulations in the financial sector have had on banks using three such sets of regulations as an example: the Chinese green credit guidelines, the Nigerian Sustainable Banking Principles (NSBPs) and the Bangladesh Environmental Risk Management (ERM) Guidelines. The authors find that: 1) mandatory guidelines have an impact on the sustainability performance of banks; 2) the inclusion of the banking sector into the development of financial sustainability regulations increases the success of the regulations; 3) activities to support the implementation of financial sustainability guidelines and compliance oversight are crucial for the success of these regulations; and 4) financial sector sustainability regulations have a positive impact on both the financial sector’s financial performance and stability and sustainability performance.