ECB suggests equity better than debt for green

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By Jasper Cox, Phil Thornton
21 Nov 2019

While the banking sector has pushed for capital requirements to be tweaked to favour green lending, European Central Bank vice president Luis de Guindos said on Thursday that equity funding might prove more appropriate than this for funding new climate technologies. On the same day, the head of supervision at the ECB said capital relief for green assets must be based on evidence.

The prospect of lighter capital needs for green assets has attracted some in the banking industry.

Speaking about the prospect of capital regulations being linked to green and brown factors, Philippe Heim, deputy CEO of Société Générale, said: “A lot of things are favouring this kind of ...

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