Green Financial Products in the European Banks' Portfolios – with a Hungarian Perspective

Abstract

Re­cently, the fin­an­cial sec­tor has also be­come in­creas­ingly sus­tain­ab­il­ity-ori­ented. Na­tional cent­ral banks and na­tional credit in­sti­tu­tions are try­ing to fol­low the ever-ex­pand­ing in­ter­na­tional reg­u­lat­ory frame­work and to de­velop new fin­an­cial in­stru­ments to im­ple­ment ESG re­quire­ments. Our re­search looked at the green fin­ance port­fo­lios of the ten major European banks by the total as­sets in 2021 to as­sess the mar­ket for green fin­an­cial products. We have also ex­amined the green in­stru­ments of the ten major do­mestic banks by bal­ance sheet total, with the hy­po­thesis that the green product mar­ket for do­mestic banks can learn a num­ber of les­sons from the green product port­fo­lios of the major European banks.