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Sustainable Financial Products in the Latin America Banking Industry: Current Status and Insights

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  • Juan Camilo Mejia-Escobar

    (Departamento de Ingeniería de la Organización, Facultad de Minas, Universidad Nacional de Colombia, Avenida 80 No. 65-223 Medellín, Colombia
    Facultad de Producción y Diseño, Institución Universitaria Pascual Bravo, Calle 73 No. 73A-226 Medellín, Colombia)

  • Juan David González-Ruiz

    (Departamento de Economía, Facultad de Ciencias Humanas y Económicas, Universidad Nacional de Colombia, Cra. 65 #59a-110 Medellín, Colombia)

  • Eduardo Duque-Grisales

    (Facultad de Ingeniería, Institución Universitaria Pascual Bravo, Calle 73 No. 73A-226 Medellín, Colombia)

Abstract

The purpose of this study is to analyse the extant literature on sustainable financial products (SFP) with a comprehensive understanding of the status quo and research trends as well as characterise the existing SFP in the Latin America banking industry. In this way, research papers derived from Scopus as well as institutional reports such as main documents, sustainability reports, and product portfolios publicly available on webpages from public, private, and development banks are used to create a database of SFP where their main characteristics are included and classified. Based on the research trends identified, the results show the development of financial products focused on environmental, social, and government (ESG) matters, mainly from the credit side, of more sustainable financial markets and products under fintech ecosystems. The results show that because of regulatory and government support through mechanisms such as green protocols and social and environmental responsibility policies, private financial institutions of Brazil, Colombia, and Argentina have led the development of both social and green financial products. These study’s findings may be used for several policymakers to broaden the opportunities available in sustainable financing and thus, provide a roadmap that researchers and practicing professionals can use to improve their understanding of SFP. Finally, the study presents the potential for further research in the field, both with a qualitative and a quantitative approach.

Suggested Citation

  • Juan Camilo Mejia-Escobar & Juan David González-Ruiz & Eduardo Duque-Grisales, 2020. "Sustainable Financial Products in the Latin America Banking Industry: Current Status and Insights," Sustainability, MDPI, vol. 12(14), pages 1-25, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:14:p:5648-:d:384193
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