Green bank regulation and global bank complexity: An international study

Tóm tắt

This study investigates the relationship between green bank regulation and
global bank geographic complexity using data from 121 countries spanning
the period 1996 to 2021. By examining the affiliate networks of internation
ally active banking organizations, we construct a comprehensive measure
of bank geographic complexity for each country. Green bank regulation is
defined based on whether central banks have an explicit sustainability man
date (Dejure) or actively support government policies aimed at achieving
sustainability goals (Defacto). The findings reveal that green bank regula
tion has a positive and significant impact on bank geographic complexity,
with stronger effects observed in Low-Income and Lower-Middle-Income
Countries (LI & LMC) and Upper-Middle-Income Countries (UMC). Exten
sive robustness checks confirm the stability of these results across alterna
tive measures. The study underscores the importance of targeted green
regulatory frameworks and highlights their role in fostering a more diverse
and globally integrated banking sector. These findings offer valuable policy
and managerial implications for promoting sustainability and complexity
within the financial sector.