JOURNAL ARTICLEPo-Jung Chen · Chih-Yu Yang
International Journal of Research in Business and Social Science · 2026
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Green bonds are typically used for environmental protection projects. This paper explores the differences between general bonds and green bonds in Taiwan, as well as the impact of inflation. The findings are as follows: First, because green bonds support environmentally sustainable development projects, which require a longer time to realize their environmental benefits, they require longer repayment periods. Second, most green bonds have lower coupon rates than general bonds, indicating that investors are willing to accept lower interest income for the sake of environmental sustainability. Third, because green bonds invest in environmental protection projects with lower returns, investors also demand higher risk premiums due to relatively higher recovery risks. Finally, after inflation occurs, the increase in green bond coupon rates is less than that of general bonds. Inflation may have different effects on the dividend yields of individual companies, but there is no significant difference for the overall industry.
DOI 10.20525/ijrbs.v15i2.49920 Crossref citations0 OpenAlex citations
JOURNAL ARTICLEMeshel Muzuva · Daniel Muzuva
International Journal of Research in Business and Social Science · 2024
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As extreme weather events continue to impact every continent and the world moves towards establishing a lower-carbon economy, the banking industry is expected to incorporate climate risk into their risk management practices. Climate change poses significant risks to bank loan portfolios through increased physical and transition risks. This study systematically analysed the literature to identify effective strategies for managing these risks. Our findings reveal that climate-related events can lead to substantial loan defaults and credit losses. To mitigate these impacts, banks can integrate climate risk into their risk management frameworks, adopt sustainable lending practices, and diversify their portfolios. Some banks have already implemented measures to mitigate climate risk through insurance policies, while others are incorporating sustainability criteria into their lending practices, such as financing green projects. By proactively addressing climate risks, banks can protect their portfolios, enhance financial resilience and contribute to a low-carbon economy.
DOI 10.20525/ijrbs.v13i6.35103 Crossref citations4 OpenAlex citations
JOURNAL ARTICLEFikri Ali Fata · Zaenal Arifin
International Journal of Research in Business and Social Science · 2024
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This research aims to analyze the impact of green credit distribution by banks on bank performance and identify factors that can influence green credit. The study utilizes data from 46 banks in Indonesia during the 2018-2022 period, by using the panel data regression method. The findings indicate (i) that green credit does not have a significant influence on credit risk, as measured by the NPL (Non-performing Loan). The distribution of more green credit allocations does not result in a decrease in bank credit risk. Additionally, sustainable business borrowers do not exhibit better debt repayment performance compared to the non-sustainable business category. (ii) In terms of bank profitability, green credit does not impact ROE (Return on Equity) and NIM (Net Interest Margin), but it does have a negative effect on ROA (Return on Assets). Banks that allocate a significant portion of their credit distribution to green initiatives tend to experience a decline in their profits. (iii) Bank size has a positive impact on the allocation of green credit, with larger banks dedicating a greater portion to the distribution of green credit. Larger banks possess more capital and extensive networks, making them better equipped to address potential risks compared to smaller banks. (iv) Meanwhile, government ownership and good corporate governance in banks do not influence the proportion of green credit distribution. The author recommends that the government make corrections to existing green financing programs, to cultivate a green credit ecosystem in Indonesia. One concrete step that can be taken is to support government-owned banks in becoming pioneers in the distribution of green credit in Indonesia.
DOI 10.20525/ijrbs.v13i1.31854 Crossref citations4 OpenAlex citations
JOURNAL ARTICLEShingirai Mugambiwa · Motshidisi Kwakwa
International Journal of Research in Business and Social Science · 2022
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The Paris Agreement has highlighted the worldwide significance of adaptation. Many investors are considering the effects of climate change and resource scarcity when making decisions. Even while the whole amount of the environmental harm caused by climate change is yet unknown, recent scientific evidence is more frightening, and many governments are taking substantial measures to avert a calamity. The financial innovations and mechanisms created to ease the transition to a low-carbon economy will have far-reaching effects on markets, firms, intermediaries, and investors. Although economists have been working on the subject for decades, financial-economics professionals have only recently become interested in climate change. There has been a growing body of empirical and theoretical contributions in recent years that analyse the influence of climate risks on investment decisions for firms, financial intermediaries, and national governments, as well as the pricing and hedging of climate change risks. This study seeks to establish the role of multilateral climate change financing in the developing world vis-à-vis challenges and opportunities for Africa. Five determinants of the multilateral climate fund were established and they are namely; Reduction of Greenhouse gas emissions, Enabling Environments, Poverty and development linkages, Private investment and Public climate finance.
DOI 10.20525/ijrbs.v11i9.20850 Crossref citations0 OpenAlex citations
JOURNAL ARTICLEFareis Althalet · Tira Siya Fajar Rahayu · Hera Hera · Ayu Fil Akhirati
International Journal of Research in Business and Social Science · 2021
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This study aims to examine Blue Bonds as a guarantee issued by the issuer (government and companies) as alternative financing. Compared to ordinary bonds that are issued only to meet the issuer's funding needs, the transaction results in Blue Bonds will be used to support marine protection, fisheries governance, waste and water pollution management, and the restoration of marine ecosystems. In this study, the author uses the method literature review sourced from journals, books, reports from related ministries, international financial institutions such as the World Bank, and news from national and international media. The results of this study indicate that by issuing Blue Bonds, the government and companies will get more funds from bond investors. Investors will receive a return in the form of a coupon (fixed interest rate) from the issuer and pay according to schedule and the initial principal investment. Not only that, the government and companies will get a good reputation among investors and actively contribute to Indonesia's maritime development.
DOI 10.20525/ijrbs.v10i5.13102 Crossref citations3 OpenAlex citations