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A first analysis on the Green Securitizations in Italy

Author

Listed:
  • Francesco Cusano

    (Bank of Italy)

  • Danilo Liberati

    (Bank of Italy)

  • Stefano Piermattei

    (Bank of Italy)

  • Lorenzo Rubeo

    (Bank of Italy)

Abstract

The work deals with the market of green securitizations in Italy. Green securitizations are financial instruments for which there are not yet accepted definitions or common methodologies to identify them. Firstly, we discuss on the possible definitions and the way to identify these instruments. Secondly, we describe the main characteristics of the market of green securitizations originated by banks in Italy during the ten years 2010 – 2019. We find that banks' securitized loans to 'brown' economic activities grew much more rapidly than 'green' activities suggesting that banks preferred to keep loans to 'green' activities in their balance sheet and to derecognize loans to the less sustainable ones. Finally, we show how the usual indexes of carbon content of Italian banks' loans at carbon-critical sectors level can overestimate the amount of financed emissions if they do not consider the banks' securitization activity.

Suggested Citation

  • Francesco Cusano & Danilo Liberati & Stefano Piermattei & Lorenzo Rubeo, 2023. "A first analysis on the Green Securitizations in Italy," Questioni di Economia e Finanza (Occasional Papers) 809, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_809_23
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2023-0809/QEF_809_23.pdf
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    References listed on IDEAS

    as
    1. Malcolm Baker & Daniel Bergstresser & George Serafeim & Jeffrey Wurgler, 2018. "Financing the Response to Climate Change: The Pricing and Ownership of U.S. Green Bonds," NBER Working Papers 25194, National Bureau of Economic Research, Inc.
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    3. D’Orazio, Paola & Popoyan, Lilit, 2019. "Fostering green investments and tackling climate-related financial risks: Which role for macroprudential policies?," Ecological Economics, Elsevier, vol. 160(C), pages 25-37.
    4. Degryse, Hans & Goncharenko, Roman & Theunisz, Carola & Vadasz, Tamas, 2023. "When green meets green," Journal of Corporate Finance, Elsevier, vol. 78(C).
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    More about this item

    Keywords

    green securitizations; carbon emissions;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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