| ECB Working Paper-Climate risk, bank lending and monetary policy
August 2, 2024--Combining euro-area credit register and carbon emission data, we provide evidence of a climate risk-taking channel in banks’ lending policies. Banks charge higher interest rates to firms featuring greater carbon emissions, and lower rates to firms committing to lower emissions, controlling for their probability of default. |
| Both effects are larger for banks committed to decarbonization. Consistently with the risk-taking channel of monetary policy, tighter policy induces banks to increase both credit risk premia and carbon emission premia, and reduce lending to high emission firms more than to low emission ones. |
| Columbia Threadneedle Investments expanding US active ETF range to Europe
May 19, 2025--A 'natural expansion' for the firm |