Commercial banks are interested in financing pro-ecological projects, also referred to as green projects, if they are profitable projects. In many countries, commercial banks provide commercial loans for the implementation of economic projects in the field of green projects if the borrower has creditworthiness.
It is increasingly common for commercial banks to finance economic projects in the field of green projects for marketing purposes and to improve their image in the context of interbank competition.
In connection with the above, I am asking you the following question:
Should commercial banks increase the scale of financing pro-ecological projects?
Please reply
Best wishes
In my opinion, both large investment banks as well as many smaller commercial, deposit and credit banks should increase the scale of financing of pro-ecological projects every year. This issue is particularly important in connection with the progressive global warming of the Earth. Global warming is recognized by many scientific centers as one of the greatest threats to humanity and life on Earth in the perspective of the end of the 21st century. Therefore, it is necessary to develop environmentally friendly projects, such as the development of renewable energy sources, reduction of classic energy sources based on mineral incineration, improvement of waste segregation techniques, recycling, development of electromobility, sustainable agricultural production, environmental protection, etc., by all possible means.
In connection with the above, I am asking you the following question:
Should commercial banks increase the scale of financing pro-ecological projects?
Please reply
Best wishes
In addition, a few, operating multinational, globally large investment banks, implementing certain fundamental international policy goals, such as the World Bank, declare that in the coming years they will increase the scale of financial resources allocated for financing pro-ecological projects.
In my opinion, both large investment banks as well as many smaller commercial, deposit and credit banks should increase the scale of financing of pro-ecological projects every year. This issue is particularly important in connection with the progressive global warming of the Earth. Global warming is recognized by many scientific centers as one of the greatest threats to humanity and life on Earth in the perspective of the end of the 21st century. Therefore, it is necessary to develop environmentally friendly projects, such as the development of renewable energy sources, reduction of classic energy sources based on mineral incineration, improvement of waste segregation techniques, recycling, development of electromobility, sustainable agricultural production, environmental protection, etc., by all possible means.
In connection with the above, I am asking you the following question:
Should commercial banks increase the scale of financing pro-ecological projects?
Please reply
Best wishes
Without hesitation but should examine the necessity of project for serving deserving population especially in South-East Asian Countries riddled with exploding population with lack of basic habitation and allied infrastructure using modern technologies with green compounds that encompasses use of pollution causing materials of industrial byproducts such as flyash etc and utilizing discarded construction materials in large scale.
Since ecological issues bedevil the whole of humanity, and execution of greening projects need adequate funding, (though the funds required will be miniscule compared to the massive inflow into manufacture of weapons) the banks ought to be in the forefront in the implementation of these projects instead of being miopically concerned with profit and loss. The fossil fuel producers and refiners, who are the worst offenders, must also part with some of their profits.
This is surely the most logical thing for the banks to do. The main reason is that all human activities and existence depend on ecological factors influencing the safety of the environment . There is a profound interconnection between all aspects of life on the Earth and from the tiniest organisms to the largest ecosystems, and humans are substantially intertwined in one way or another. In an era of globalization, therefore, business corporates including banks should recognize that we are all part of a global society and we have to learn how to make such a society work intelligently and safely. Unfortunately, we have at present no unified vision or leadership that can guide us in this endeavor. We have not yet found a method of spiritualism whereby man and nature live peacefully side by side in order to enhance the required optimism about the continuity of human civilization.
Any mandate forcing the banks to lend based on political considerations limits the efficiency in the allocation of resources and ultimately is detrimental to economic and social development. You may consider Hayek's argument in "The Use of Knowledge in Society" as a general rule to evaluate policy.
https://www.econlib.org/library/Essays/hykKnw.html
Best,
Leo
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