Chartered Banker Institute CEO & ESG specialist
In the first part of this two-part video series on “Banks and the Green Economy”, Simon gives us an overview and some examples of how banks can – and are – supporting the transition to a green economy.
In the first part of this two-part video series on “Banks and the Green Economy”, Simon gives us an overview and some examples of how banks can – and are – supporting the transition to a green economy.
Banks are the primary source of credit for households and businesses, and the driving force behind our economic existence. They are extremely well positioned to reallocate credit, and mobilise capital away from environmentally harmful activities towards the green economy, supporting the transition to a sustainable, low carbon world. The term “banking” can be applied to a large range of financial institutions which caters a diverse range of clients, regions and sectors.
Key learning objectives:
What is a Retail Bank?
Explain the functions of a retail bank
Identify some examples of retail banking products and services
Explain Green Mortgages
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Retail Banks mainly serves individuals and small businesses. They offer green products which include green mortgages, loans, savings and investments, and green payment services.
1.Deposits and savings accounts, and payment services - Some banks offer green current accounts that enable customers to influence how their deposits are used.
2. Green Mortgages - Provide customers with attractive interest rates for purchasing energy-efficient homes or investing in green retrofits, energy-efficient appliances or green power.
3. Green Car Loans - Bank Australia links all car loans to the environmental impact of the vehicle being purchased. The bank calculates the greenhouse gas emissions associated with the vehicle type and uses this to determine the interest rate.
4. Green Business Lending - These generally offer more favourable terms such as lower interest rates, or more relaxed collateral requirements for loans with a clearly defined green or sustainable purpose, such as investing in more energy-efficient or otherwise more sustainable production equipment, or premises.
This video is now available for free. It is also part of a premium, accredited video course. Sign up for a 14-day free trial to watch more.