IDEAS home Printed from https://ideas.repec.org/a/ejn/ejbmjr/v11y2023i3-4p134-146.html
   My bibliography  Save this article

The Feasibility Of Securitization In Greening Bank Financial Statements

Author

Listed:
  • Chekani Nkwaira

    (University of South Africa, South Africa)

Abstract

Despite strong projections of imminent rising temperatures in the 21st century, a small fraction of banking assets flows towards green financing. The study aims to establish the feasibility of greening bank statements using the securitization technique. A document analysis was carried out on banks' statements of financial position. A purposive sampling of the top 40 banks by assets is employed. Commitments by the 40 largest banks by assets were obtained from their annual reports. The European securitization forum website provides the securitization issuance data. A green coverage model was formulated to determine the amount of climate-linked assets covered by the green commitments. A gap in coverage with a maximum of 40% was established. Regression analysis of the relationship between asset sizes and green financing commitments displayed a weak, nonetheless positive link between the variables. The null hypothesis stipulating no relationship between the variables was tested and rejected. The data supported the hypothesis that the value of securitization issuances is inadequate to green the financial statements. However, the feasibility of banks achieving green financing targets by increasing green finance coverage or current commitments with a disproportionate increase in brown-backed securitized assets was evident.

Suggested Citation

  • Chekani Nkwaira, 2023. "The Feasibility Of Securitization In Greening Bank Financial Statements," Eurasian Journal of Business and Management, Eurasian Publications, vol. 11(3-4), pages 134-146.
    • Handle: RePEc:ejn:ejbmjr:v:11:y:2023:i:3-4:p:134-146
    as

    Download full text from publisher

    File URL: https://eurasianpublications.com/wp-content/uploads/2024/03/ejbm-11.3-4.2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sylwester Kozak & Olga Teplova, 2012. "Securitization As A Tool Of Bank Liquidity And Funding Management Before And After The Crisis: The Case Of The Eu," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 8(4), pages 30-43, February.
    2. Miguel A. Segoviano & Bradley Jones & Peter Lindner & Johannes Blankenheim, 2015. "Securitization: The Road Ahead," IMF Staff Discussion Notes 2015/001, International Monetary Fund.
    3. Miguel A. Segoviano & Bradley Jones & Peter Lindner & Johannes Blankenheim, 2015. "Securitization; The Road Ahead," IMF Staff Discussion Notes 15/01, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mirza, Afrasiab & Stephens, Eric, 2022. "Securitization and aggregate investment efficiency," Journal of Financial Intermediation, Elsevier, vol. 52(C).
    2. International Monetary Fund, 2015. "Philippines: Selected Issues," IMF Staff Country Reports 2015/247, International Monetary Fund.
    3. Nils Boesel & C.J.M. Kool & S. Lugo, 2016. "Do European Banks with a Covered Bond Program still issue Asset-Backed Securities for funding?," Working Papers 16-03, Utrecht School of Economics.
    4. Andreas Blöchlinger, 2018. "Credit Rating and Pricing: Poles Apart," JRFM, MDPI, vol. 11(2), pages 1-26, May.
    5. Deku, Solomon Y. & Kara, Alper & Marqués-Ibáñez, David, 2019. "Do reputable issuers provide better-quality securitizations?," Working Paper Series 2236, European Central Bank.
    6. Boesel, Nils & Kool, Clemens & Lugo, Stefano, 2018. "Do European banks with a covered bond program issue asset-backed securities for funding?," Journal of International Money and Finance, Elsevier, vol. 81(C), pages 76-87.
    7. Adrian, Tobias & Breuer, Peter & Ashcraft, Adam & Cetorelli, Nicola, 2018. "A Review of Shadow Banking," CEPR Discussion Papers 13363, C.E.P.R. Discussion Papers.
    8. Kraemer-Eis, Helmut & Passaris, George & Tappi, Alessandro & Inglisa, Giovanni, 2015. "SME Securitisation – at a crossroads?," EIF Working Paper Series 2015/31, European Investment Fund (EIF).
    9. Kraemer-Eis, Helmut & Lang, Frank & Torfs, Wouter & Gvetadze, Salome, 2015. "European Small Business Finance Outlook: December 2015," EIF Working Paper Series 2015/32, European Investment Fund (EIF).
    10. Jesper Berg & Laurent Clerc & Olivier Garnier & Erik Nielsen & Natacha Valla, 2015. "From the Investment Plan to the Capital Markets Union: European Financial Structure and Cross Border Risk-sharing," Working Papers 2015-34, CEPII research center.
    11. Ameha Tefera Tessema & Jan Walters Kruger, 2017. "An Improvement on An Interest Rate Commission Agent Banking System Model (AIRCABS Model)," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 685-705.
    12. Kraemer-Eis, Helmut & Lang, Frank & Gvetadze, Salome, 2015. "European Small Business Finance Outlook: June 2015," EIF Working Paper Series 2015/28, European Investment Fund (EIF).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ejn:ejbmjr:v:11:y:2023:i:3-4:p:134-146. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Esra Barakli (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.