COMPARATIVE ANALYSIS OF METHODOLOGIES FOR ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT IN LENDING APPLIED BY INTERNATIONAL FINANCIAL INSTITUTIONS
Virginia I. Zhelyazkova
Pages: 617-624 Published: 1 Jun 2014
Views: 2,690 Downloads: 814
Abstract: More and more banking institutions face the need to do environmental risk management in their lending portfolios. Since this is comparatively new practice for them, they need to draw from the experience of international financial institutions. Currently there are some methodologies applied for the purpose - among which the one has been developed by the European Bank for Reconstruction and Development, the other - by the International Financial Corporation, and a few others exist. The current paper aims at comparing the methodologies applied the most and drawing conclusions regarding their differences and applicability. This is considered important for the smoother applicability of the methodologies by the financial institutions – once they can differentiate between the specificities of the methodologies, they would be in a position to select the most appropriate one for them.